Multiple Choice
Assume a mean-per-unit estimation variables sampling application with a tolerable misstatement of $70,000 and a book value of $700,000. After performing the sampling plan, the auditors calculated an adjusted allowance for sampling risk of $45,000 and a point estimate of the population's total audited value to be $650,000. Based on these results, the auditor would:
A) Because the tolerable misstatement exceeds the adjusted allowance for sampling risk, conclude that the population does not contain a material misstatement.
B) Because the total audited value ± tolerable misstatement includes the book value, conclude that the population does not contain a material misstatement.
C) Because the tolerable misstatement exceeds the adjusted allowance for sampling risk, conclude that there is too great a risk that the account balance is materially misstated.
D) Because the total audited value ± adjusted allowance for sampling risk does not include the book value, conclude that there is too great a risk that the account balance is materially misstated.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: A dual purpose test simultaneously:<br>A)Addresses two different
Q16: Stratification of the population generally results in
Q26: The 3,000 accounts receivable of DEF Company
Q31: The 2,000 accounts receivable of ABC Company
Q43: Which of the following statistical selection techniques
Q48: The auditors are using mean-per-unit sampling to
Q49: When performing tests of controls over authorization
Q51: What is the estimated total audited value
Q53: Assume a mean-per-unit estimation variables sampling application
Q63: Increases in the tolerable misstatement result in