The Auditor Needs to Gain Reasonable Assurance That the Equipment

question 34

Multiple Choice

The auditor needs to gain reasonable assurance that the equipment accounts in the fixed asset master file are not understated.Which of the following accounts would most likely be reviewed in making that determination?

• A)Depreciation expense
• B)Repairs and maintenance expense
• C)Gains/losses on sales and retirements
• D)Cash

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Definitions:

Extinction

The gradual dissipation of behavior following the termination of reinforcement.

Delayed or Partial Reinforcement

A principle in behavior psychology where a reward is not given every time a desired behavior is exhibited, making the response more resilient to extinction.

Continuous, Immediate Reinforcement

A method in behavioral psychology where a desired behavior is rewarded every time it occurs, without delay.

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior occurring in the future.