After the Financial Statements Have Been Issued, If a 'Subsequent

question 14

Multiple Choice

After the financial statements have been issued, if a 'subsequent discovery of facts occurs' (the auditor becomes aware that some information in the statements is materially misleading) , the auditor should ask the client to issue an immediate revision.This is required only if:

• A) management makes the discovery and informs the auditor.
• B) the discovery of facts relates to developments that occurred after the date of the auditor's report.
• C) the facts discovered already existed at the audit report date.
• D) the auditor makes the subsequent discovery of facts himself or herself.

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Definitions:

Excitatory Conditioned Response

A learned response that increases the probability of a specific behavior in anticipation of a reward or outcome.

Forward Conditioning

A type of classical conditioning where the conditioned stimulus is presented before the unconditioned stimulus, leading to an association between the two.

Rescorla-Wagner Model

A model of conditioning that emphasizes the importance of the predictability of the US by the CS, proposing a limit to the amount of learning that can occur.

Associative Strength

The measure of the relationship between a conditioned stimulus and an unconditioned stimulus, indicating how strongly two stimuli are linked in an individual's mind.