Inherent Risk and Control Risk Normally Vary for Different Accounts

question 27

True/False

Inherent risk and control risk normally vary for different accounts in the same audit, whereas acceptable audit risk is ordinarily held constant for each account in the same audit.

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Definitions:

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses.

Fixed Ratio Schedule

A reinforcement schedule in behavioral psychology where a response is reinforced only after a specified number of responses.

Variable Interval Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where rewards are delivered at fixed intervals of time, provided the appropriate response is made.