An Example of a Sales-Related Factor That Would Increase Inherent

question 94

Multiple Choice

An example of a sales-related factor that would increase inherent risk would be ________.

• A)significant legal compliance issues when making sales
• B)a history of complying with all laws and regulations
• C)strong oversight of management by the board of directors
• D)revenue recognition is relatively straightforward, with no significant accounting issue

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Definitions:

Confidence Interval

A spectrum of figures, taken from sample observations, possibly enclosing the value of an undetermined population characteristic.

Margin Of Error

An expression of the amount of random sampling error in a survey's results, indicating the confidence in the reliability of the results.

Sample Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of data values from its sample mean.

Equal Sample Sizes

A condition in statistical analysis where the number of observations in each group being compared is the same.