Simpson & Associates Issued an Unmodified Auditor's Opinion on the Financial

question 22

Multiple Choice

Simpson & Associates issued an unmodified auditor's opinion on the financial report of Ridge Ltd (Ridge) .Simpson & Associates did not detect material misstatements in the financial report as a result of negligence in the performance of the audit.Based upon the financial report, Clark purchased shares in Ridge.Shortly afterwards, Ridge became insolvent, causing the price of the shares to decline drastically.Clark has commenced legal action against Simpson amp; Associates for damages.Simpson & Associates' best defence to such an action would be that:

• A)Clark lacks a contractual relationship as a basis to sue.
• B)the engagement letter specifically disclaimed all liability to third parties.
• C)there is no proof of proximity.
• D)there has been no subsequent sale of the shares for which a precise loss can be calculated.

Recognize the role of cognitive processes in operant conditioning.

Identify the contributions of key figures (e.g., B. F. Skinner, Martin Seligman, Albert Bandura) to the psychology of learning.

Differentiate between continuous and partial reinforcement schedules and their effects on behavior.

Describe behavior modification techniques and their applications.

---

Definitions:

Transaction Costs

Expenses incurred when buying or selling goods, services, or financial assets, including fees, commissions, and other charges.

Issuing Shares

The process by which a company distributes new shares of stock to investors, thereby raising capital.

Reverse Takeover

A transaction where a private company acquires a public company to bypass the lengthy and complex process of going public.

Share Exchange

A transaction in which the shares of one company are exchanged for the shares of another company, often as part of a merger or acquisition.