I keep reading that a dog doesn't know when it's done wrong if you catch it after the event and not during. BUT I also keep reading the statement 'He/she knew she was in the wrong...'
What do you think?

I personally think my pooch knows and is plotting dog world domination as I type :D

Willis doesn't know he's doing wrong - but he does know that what he's doing provokes a reaction :D

And he will go back and re-do it when the need arises.

Dogs don't know 'right' and 'wrong'. Those are human definitions.

Dogs can sense mood, and will cower if people are angry (though they have no idea of the reasoning behind the anger), in an attempt at appeasement.

Many people wrongly interpret this as 'guilt', then punish the poor dog anyway. Next time the dog cowers and grovels even more ... :(