Before Selecting a Sample, It Is Necessary to Specify the Expected

question 9

Multiple Choice

Before selecting a sample, it is necessary to specify the expected error. The main purpose for doing this is:

• A) it is necessary in determining sampling risk.
• B) it is necessary to compare it to the previous year.
• C) it is the maximum amount that can be misstated where the auditor can still conclude that the account is fairly stated.
• D) it is important in determining sample size.

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Definitions:

Remember

The cognitive process of recalling information or experiences from the past.

Circular Fallacy

An argument that commits the logical fallacy of assuming what it is attempting to prove, thus reasoning in a circle.

Negative Way

A pessimistic or adverse approach to thinking, feeling, or responding to situations, often focusing on undesirable outcomes.

Depressed

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.