Nonsampling Errors Occur When Audit Tests Do Not Uncover Existing

question 70

Multiple Choice

Nonsampling errors occur when audit tests do not uncover existing exceptions in the

• A)population.
• B)sample.
• C)planning stage.
• D)financial statements.

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Definitions:

Operating Activities

Activities directly related to the business's primary operations, such as selling products or services, which are reflected in the company's cash flow.

Net Income

Net income is the total profit a company generates after subtracting all its expenses, taxes, and losses from its total revenue.

Operating Activities

Activities that constitute the primary or main activities of an entity, including the production, sales, and delivery of the company’s product as well as collecting payment from its customers.

Sale Proceeds

Sale proceeds refer to the total amount received from the sale of goods or assets before any deductions are made.