In Addition to Performing Analytical Procedures That Examine the Relationship

question 93

Essay

In addition to performing analytical procedures that examine the relationship of inventory account balances with related financial statement accounts, auditor's will often use nonfinancial measures in determining the reasonableness of inventory balances. List below at least two nonfinancial measures that may be useful to auditors.

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Definitions:

Suppressive Influence

The impact or effect that reduces, inhibits, or diminishes a particular response, activity, or expression.

Mowrer

A psychologist known for his two-factor theory of avoidance learning, which combines classical and operant conditioning theories to explain how anxiety and phobias are learned and maintained.

First Stage Avoidance

First stage avoidance in classical conditioning is where the organism learns to avoid an aversive stimulus by responding appropriately to a warning signal.

Fear

Conditioned response to stimuli associated with painful events; motivates avoidance of aversive events.