An Auditor Learns That a Client's Employee in Control of Inventory

question 23

Multiple Choice

An auditor learns that a client's employee in control of inventory gets divorced and is responsible for paying a large amount of child support. All of the following for the audit of inventory likely are true except:

• A)fraud risk increases.
• B)the risk of misappropriation of assets increases.
• C)risk of material misstatement increases.
• D)detection risk increases.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to learned responses.

Aplysia

A genus of sea slugs known for their utility in neurobiological studies, especially in understanding the fundamentals of learning and memory.

Physical Basis

The underlying material or biological foundation for a phenomenon or condition.

Long-Term Potentiation

An enduring increase in signal transmission between neurons that results from stimulating them simultaneously, believed to be a mechanism behind learning and memory.