Auditors Are Responsible for Determining Whether Financial Statements Are Materially

question 75

Multiple Choice

Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:

• A) regulators.
• B) the audit firm's managing partner.
• C) the client shareholders.
• D) the client's management.

---

Definitions:

Substituting Stimulus

A stimulus that is used to replace another, prompting a similar response in a conditioning experiment or situation.

Reinforcement Schedule

A plan for how and when reinforcement will be delivered in operant conditioning to encourage certain behaviors.

Response Rate

The frequency or speed of responses to a stimulus or query, often used in surveys, research, and experiments.

Extinction

The process of eliminating a behavior by withholding reinforcement.