In the Audit of the Transactions and Amounts in the Capital

question 36

Multiple Choice

In the audit of the transactions and amounts in the capital acquisition and repayment cycle, the auditor must take great care in making sure that the significant legal requirements affecting the financial statements have been properly fulfilled and

• A) any violations are reported to the SEC.
• B) are adequately disclosed in the financial statements.
• C) must issue a disclaimer if they haven't been fulfilled.
• D) any departures from the agreements are made with management's knowledge and consent.

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Definitions:

Acquisition Training

involves the repeated pairing of a neutral stimulus with an unconditioned stimulus to elicit a conditioned response.

Extinction

The process in psychology where a conditioned response decreases or disappears when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Negative Reinforcement

A behavioral conditioning principle where the removal of an undesirable or aversive stimulus following a behavior increases the likelihood of that behavior being repeated.

Aversive Stimulus

A stimulus that is unpleasant or painful, leading to avoidance behavior.