Auditors Can Assess the Adequacy of Their Client's Closing Procedures

question 9

Multiple Choice

Auditors can assess the adequacy of their client's closing procedures by:

• A) Checking the accuracy of accrual calculations around year-end.
• B) Looking at earnings trends to assess whether reported income is in line with similar periods in prior years.
• C) a and b.
• D) None of the above.

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Definitions:

Insight

The capacity to gain an accurate and deep understanding of a problem or situation suddenly, often leading to a solution.

Reinforcement

A concept in behaviorism that involves increasing the likelihood of a behavior's occurrence through the administration of rewards or punishments.

Operant Conditioning

Operant conditioning is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

Pavlovian Conditioning, an associative learning process through which an animal or human learns to link two stimuli, with one stimulus coming to evoke a response originally evoked by the other.