The Four Categories for Describing the Size of Audit Firms

question 56

Multiple Choice

The four categories for describing the size of audit firms include: the Big Four international firms; national firms; regional and local firms; and small firms.Which of the following is not a characteristic of a small firm?

• A)Most have fewer than 25 professionals.
• B)They perform audits on small and not-for-profit businesses.
• C)Tax services are more important to their practice than auditing.
• D)They do not audit publicly traded companies.

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Definitions:

Fixed-ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses, leading to high and steady response rates.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, making it highly effective in maintaining behavior.

Fixed-interval

A term in operant conditioning referring to a schedule of reinforcement where a response is rewarded only after a specified amount of time has passed.

Variable-interval

A pattern of reinforcement in which a reward is given after a time period that cannot be predicted has passed.