Which of the Following Does the Design of a MUS

question 33

Multiple Choice

Which of the following does the design of a MUS sample not require the auditor to determine?

• A)Risk of incorrect acceptance.
• B)Inherent risk.
• C)Ratio of expected misstatement to tolerable misstatement.
• D)Ratio of tolerable misstatement to the total population value.

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Definitions:

Normal Good

A normal good is a type of good for which demand increases when income increases, and falls when income decreases, holding all other factors constant.

Income

Refers to the money received, especially on a regular basis, for work or through investments.

Normal Goods

Goods for which demand increases as consumer income rises, and falls when consumer income decreases, opposite to inferior goods.

Inferior Goods

Goods whose demand decreases as the income of consumers increases, in contrast to normal goods.