In an Auditing Context,which of the Following Scenarios Describes a Type

question 25

Multiple Choice

In an auditing context,which of the following scenarios describes a type II error?

• A)An auditor applies non-statistical sampling methodology to a randomly selected sample.
• B)An auditor fails to uncover a material misstatement in an account that is,in reality,materially misstated.
• C)An auditor applies statistical sampling methodology to a non-randomly selected sample.
• D)An auditor concludes that an account is materially misstated,when in reality,it is not materially misstated.

---

Definitions:

Budget Line

A visual representation of all the different combinations of two products that can be bought within a certain budget and price range.

Indifference Curve

A chart illustrating various pairings of two products that deliver the same level of enjoyment and usefulness to a buyer.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.

Indifference Curve

A graph that shows different combinations of two goods or services among which a consumer is indifferent, illustrating preferences and trade-offs.