For Each of the Following Situations, Indicate What Type of Audit

question 63

Essay

For each of the following situations, indicate what type of audit report is most appropriate.
a. The auditor lacks independence in fact, but not necessarily in appearance.
b. There is a scope limitation and it is material but the overall financial statements are still presented fairly.
c. The uncorrected misstatements are immaterial.
d. There is a departure from GAAP and it is pervasively material.

---

Definitions:

Observational Learning

Observational Learning is a learning process occurring through watching the actions of others and the outcomes of those actions, not through direct experience.

Operant Conditioning

An educational approach that influences behavior magnitude by issuing rewards or punishments.

Classical Conditioning

The educational method that is achieved by creating links between an environmental stimulus and one that naturally exists.

Instinctive Drift

The phenomenon where an animal's learned behavior reverts to its instinctual behaviors, undermining conditioned responses.