Evidence Is Reliable If It

question 22

Multiple Choice

Evidence is reliable if it

• A) Signals the true state of a management assertion.
• B) Applies to the period being audited.
• C) Relates to the audit assertion being tested.
• D) Is consistent with management's assertions.

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Definitions:

Average-Total-Cost Curve

A curve showing the average total cost of producing different levels of output in the short run.

Punishment

A consequence imposed after an undesirable behavior, aimed at reducing that behavior.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable event strengthens the behavior that led to its removal.

Extinction

In the context of behavior, the gradual reduction and eventual elimination of a conditioned response.