The Maximum Error in the Population That the Auditor Is

question 169

Multiple Choice

The maximum error in the population that the auditor is willing to accept is called:

• A) Risk of material misstatement
• B) detection of risk
• C) Both A & B
• D) Neither A nor B

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Definitions:

Hawthorne Studies

A series of experiments conducted in the 1920s and 1930s that revealed the importance of social relations and worker satisfaction in the workplace.

Conclusion

The end or final part of something, such as a document or project, often summarizing the key points or outcomes.

Classical Approach

A management theory focused on the efficiency, productivity, and output of work processes, advocating for a structured organization and clear division of labor.

Behavioural Management Approach

The behavioural management approach focuses on understanding, predicting, and influencing employee behavior through various tactics, emphasizing the importance of the work environment.