When No Misstatements Are Found in a PPS Sampling Plan

question 9

Multiple Choice

When no misstatements are found in a PPS sampling plan:

• A) allowance for sampling risk must be adjusted upward to compensate.
• B) projected misstatement in the population is zero.
• C) sampling must continue until at least one deviation is found.
• D) the auditor should use a lower risk of incorrect acceptance in evaluating the sample than used in determining sample size.
• E) the expansion factor can always be ignored.

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Definitions:

Strike Price

The price at which the holder of an option contract can buy (call option) or sell (put option) the underlying asset.

Strike Price

The fixed price that allows the possessor of an option to either acquire (with a call option) or dispose of (with a put option) the base asset.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Market Price

The present cost at which a product or service is available for purchase or sale in the market.