An Auditor Tests an Entity's Policy of Obtaining Credit Approval

question 4

Multiple Choice

An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's financial statement assertion of

• A) Valuation or allocation.
• B) Completeness.
• C) Existence or occurrence.
• D) Rights and obligations.

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Definitions:

Extinction

In the study of psychology, this term describes the slow reduction and final elimination of a conditioned response due to the absence of pairing between the conditioned and unconditioned stimuli.

Stimulus Discrimination

The learned ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.

Classical Conditioning

A training method where two signals are consistently associated with each other; a reaction initially triggered by the second signal ultimately becomes triggered by just the first signal alone.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.