An Audit Firm's Business Risk Is Affected By

question 21

Multiple Choice

An audit firm's business risk is affected by:

• A) the client's business risk.
• B) its ability to make profits from the work it performs.
• C) the integrity of client's management.
• D) All of the above.

---

Definitions:

External Locus

The belief that one's life events are largely controlled by external forces or fate rather than one's own efforts.

Unconditioned Response

In classical conditioning, it is the automatic, natural reaction elicited by an unconditioned stimulus without prior learning or conditioning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus.

Unconditioned Stimulus

The stimulus normally produced by the unconditioned response (e.g., food producing salivation).