Explain Why External Auditors Perform Compliance Testing When a Main

question 116

Essay

Explain why external auditors perform compliance testing when a main objective of a financial statement audit is to express an opinion regarding the fairness of the monetary balances in a company's financial statements.

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Definitions:

Classical Conditioning

A reinforcement process where two stimuli are regularly conjoined; the response that is initially elicited by the second stimulus is later elicited by the first stimulus singularly.

Unconditioned Response

Unconditioned response is a naturally occurring reaction to an unconditioned stimulus without the need for prior learning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Secondary Conditioner

A stimulus that becomes reinforcing through its association with a primary reinforcer.