A Properly Planned and Performed Audit May Fail to Detect

question 8

Multiple Choice

A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because

• A) Audit procedures that are otherwise effective may be ineffective for fraud that is concealed through collusion.
• B) An audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud.
• C) The factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial statements.
• D) The auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial statements taken as a whole.

Grasp the significance of aggregate demand and supply in economic theories.

Comprehend the impact of fiscal and monetary policies on recession and inflation.

Understand the historical context and evolution of economic thoughts from classical economics to modern theories.

Recognize the contribution of significant economists to economic theory and policy.

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Definitions:

Classical Conditioning

A conditioning method where the continuous association of two stimuli results in a response initially provoked by the second stimulus becoming evoked by the sole presentation of the first stimulus.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, demonstrating the learning process through the Pavlov's dogs experiment.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.