When Planning a Sample for a Substantive Test of Details

question 563

Multiple Choice

When planning a sample for a substantive test of details, an auditor should consider tolerable misstatement for the sample. This consideration should:

• A) Be related to the auditor's business risk.
• B) Not be adjusted for qualitative factors.
• C) Be related to preliminary judgments about materiality levels.
• D) Not be changed during the audit process.

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Definitions:

Buffer

A temporary storage area used to manage differences in processing rates between producers and consumers of data in computing or in audio/video streaming.

Business Reports

Structured documents that convey information, analysis, and recommendations to facilitate business decision-making.

Paragraph Lengths

The measure of the extent or size of a paragraph in a written document, which impacts readability and structure.

Outdated Expression

A phrase or term that is no longer commonly used or has fallen out of fashion.