The expansion Factor Is

question 41

Multiple Choice

The expansion factor is:

• A) used to indirectly affect the sample size.
• B) added to the anticipated misstatement.
• C) inversely related to sample size.
• D) directly related to the risk of incorrect acceptance.
• E) required only when misstatements are anticipated.

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Definitions:

Subsidiary Ledger

A subsidiary ledger is a detailed ledger containing individual accounts with a common characteristic, which is summarized and presented in a single account in the general ledger.

Control Account

A summary account in the general ledger that consolidates and reflects the total amount of transactions recorded in subsidiary ledgers for easier oversight and reconciliation.

Invoice Price

The initial quoted price on an invoice prior to deductions such as discounts, allowances, or rebates.