If an Auditor Were to Calculate an Estimate of the Errors

question 44

Multiple Choice

If an auditor were to calculate an estimate of the errors by direct projection from the sample to the population, and found $15,000 of net overstatement errors in a sample of $100 000 out of a total population of $500 000, the estimate of errors in the population would be:

• A) $7,500.
• B) $750,000.
• C) $75,000.
• D) $750.

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Definitions:

Authoritarian Personality

A personality type characterized by strict adherence to conventional values and a belief in absolute obedience or respect towards authority.

Prejudiced Against

Holding preconceived negative judgments or opinions about a group or individual based on characteristics like race, gender, or religion, without fair justification.

Minority Groups

Social groups that are differentiated from the majority in a society through cultural, ethnic, racial, or religious characteristics.

Highly Cohesive

Highly cohesive describes a group or material that sticks together strongly, in social contexts referring to a group closely united in purpose or function.