If the Auditor Is Performing an Audit of a Nonpublic

question 29

Multiple Choice

If the auditor is performing an audit of a nonpublic company and the client refuses to provide a management representation letter, the auditor may:

• A) issue a financial statement audit report.
• B) issue an integrated audit report.
• C) issue a financial statement audit report with a scope limitation.
• D) depending on the circumstances, the auditor may choose any of the alternatives.

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Definitions:

Shaping

A method of positive reinforcement of behavior patterns in operant conditioning.

Simpler Response

A basic or more straightforward reaction or answer to a stimulus or question, often requiring less cognitive or emotional effort.

Operant Conditioning

An instructional process whereby the force behind a behavior is shaped by rewards or sanctions.

Shaping

A method of teaching new behaviors by reinforcing successive approximations toward a desired behavior.