Suppose That the Auditors in the Preceding Question Participated Knowingly

question 19

Multiple Choice

Suppose that the auditors in the preceding question participated knowingly in commission of violations of securities laws (with managers and directors of the audit client) .What is the auditors' likely obligation?

• A) $5,000,000.
• B) Zero.
• C) $2,250,000.
• D) $1,500,000.

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Definitions:

Conditioned Stimulus

A stimulus that was neutral at first but becomes associated with an unconditioned stimulus to trigger a conditioned response after conditioning.

Generalization

A process in learning where the response is to spread from one specific stimulus to other stimuli that resemble the original.

Acquisition

The process of learning or gaining knowledge, skills, or responses through study, experience, or teaching.

Generalization

A principle in psychology that refers to the tendency to apply learned responses to similar stimuli beyond the original conditions of learning.