Because It Is Not Possible to Test All Transactions and Balances

question 77

Multiple Choice

Because it is not possible to test all transactions and balances, auditors rely on this to choose and test a limited number of items and transactions and then make conclusions about the balance as a whole.

• A)Sampling
• B)Materiality
• C)Compliance
• D)Substance

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Definitions:

Vascular Plants

A large group of plants that possess vascular tissues (xylem and phloem) for the transport of water, nutrients, and sugars throughout the plant.

Evaporation

The process by which water turns from a liquid into a vapor, often under the influence of heat.

Cohesion

Property of a substance (such as water) that arises from the tendency of its molecules to resist separating from one another.

Osmosis

Diffusion of water across a selectively permeable membrane; occurs in response to a difference in solute concentration between the fluids on either side of the membrane.