After Testing a Client's Internal Control Activities, an Auditor Discovers

question 662

Multiple Choice

After testing a client's internal control activities, an auditor discovers a number of significant deficiencies in the operation of a client's internal controls. Under these circumstances the auditor most likely would:

• A) Issue a disclaimer of opinion about the internal controls as part of the auditor's report.
• B) Increase the assessment of control risk and increase the extent of substantive tests.
• C) Issue a qualified opinion of this finding as part of the auditor's report.
• D) Withdraw from the audit because the internal controls are ineffective.

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Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, indicating the appropriate context for that behavior.

Rewarding Stimuli

Stimuli that increase the likelihood of a repeat of the behavior that they follow due to their positive effects.

Self-Monitoring

A phase of self-management and an intervention technique. Self-monitoring involves the process of operationally defining a target behavior and having students observe and record its occurrence or absence while engaging in some activity or task.

Contingent Reinforcer

A reinforcement given only after a specific behavior is exhibited, thereby increasing the likelihood of that behavior occurring again.