When Either the Auditor's Quantitative (Statistical) or Qualitative Assessments of Sample

question 165

Multiple Choice

When either the auditor's quantitative (statistical) or qualitative assessments of sample results support the conclusion that the population is materially misstated, _______.

• A)professional judgment should be used in deciding on an appropriate course of action
• B)the auditor should immediately withdraw from the engagement
• C)the auditor should consider notifying the audit committee and SEC
• D)the auditor should proceed to issue an unqualified (clean) audit opinion

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Definitions:

Ill-structured Problem

A problem that lacks a clear path to a solution and may not have a definitive answer, often requiring creative or critical thinking to resolve.

Well-structured Problem

A problem that has a clear goal, obvious solution paths, and a definite solution.

Existing State

refers to the current condition or status of a system, process, or situation before any changes are made.

Desired State

The condition or situation that individuals or organizations aim to achieve, often through setting goals and implementing strategies.