An Auditor Could Determine How Many Items Need to Be

question 65

Multiple Choice

An auditor could determine how many items need to be selected from the population for a particular audit test by consulting:

• A) ASA 530.
• B) ASA 500.
• C) ASA 300.
• D) none of the above

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Definitions:

Ordinary Income

Income earned from standard operations of a business or through wages, as opposed to capital gains or investment income.

Profitability of Operations

An assessment of how efficiently a company generates profit from its core business activities, excluding peripheral activities.

EBIT

An indicator of company profit, Earnings Before Interest and Taxes, which omits the costs related to interest and taxes.

Trade Credit

A financing arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.