MNE and Associates Used the Benchmark of 5% of Income

question 55

Multiple Choice

MNE and Associates used the benchmark of 5% of income (earnings) before income tax and came up with $9.5 million as their planning materiality for Garden, Inc.MNE also determined that planning materiality using a benchmark of 1% total assets resulted in $23 million.How should MNE decide which planning materiality amount to use?

• A)Ultimately, the auditors must use their professional judgment to decide on the planning materiality amount, along with qualitative factors in the final assessment.
• B)The auditors would use the largest amount in order to detect larger material misstatements.
• C)The auditors would use the smaller amount in order to keep with the principle of conservatism.
• D)The auditors would average the two amounts because the use of two benchmarks provides greater precision.

Grasp the mechanisms and effectiveness of aversive conditioning in treating addictions.

Identify the basics of behavior therapy, including observational and operant conditioning methods.

Comprehend the principles and techniques of cognitive therapies, including cognitive-behavioral therapy (CBT) and rational-emotive behavior therapy (REBT).

Recognize the uses and effects of virtual reality and technology-assisted therapies in treating phobias and posttraumatic stress disorder (PTSD).

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Definitions:

Social Psychology

A branch of psychology focused on understanding how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Discipline

A field of study or branch of knowledge, or the practice of training individuals to obey rules and codes of behavior.

Concept

A general idea or understanding derived from specific instances.

Norm

Standards or expectations that are accepted by a group as guiding principles of behavior.