In the First Audit of an Entity, Because of the Entity's

question 32

Multiple Choice

In the first audit of an entity, because of the entity's record retention policies, an auditor was not able to gather sufficient evidence about the consistent application of accounting principles between the current and the prior year, as well as the amounts of assets or liabilities at the beginning of the current year. If the amounts in question could materially affect current operating results, the auditor would:

• A)be unable to express an opinion on the current year's results of operations and cash flows.
• B)express a qualified opinion on the financial statements because of a client-imposed scope limitation.
• C)withdraw from the engagement and refuse to be associated with the financial statements.
• D)specifically state that the financial statements are not comparable to the prior year because of an uncertainty.

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Definitions:

Positive Reinforcement

A concept in behavioral psychology where a behavior is encouraged by rewarding it, thereby increasing the likelihood of its recurrence.

Aversive Punishment

Aversive Punishment involves applying an unpleasant stimulus with the goal of decreasing or eliminating an undesirable behavior.

Negative Reinforcement

The strengthening of a behavior because it removes or decreases an unpleasant experience or outcome.

Aversive Punishment

A form of punishment that involves introducing an unpleasant or painful stimulus in order to reduce the likelihood of a behavior reoccurring.