Which of the Following Best Describes What the Auditor Means

question 27

Multiple Choice

Which of the following best describes what the auditor means by the exception rate in the attribute sampling plan? The

• A)number of errors that can reasonably be expected to be found in a population.
• B)frequency with which a certain characteristic occurs within a population.
• C)degree of confidence that the sample is representative of the population.
• D)dollar range within which the true population total can be expected to fall.

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Definitions:

Consolidated Statements

Consolidated statements are financial reports that combine the financial position, results of operations, and cash flows of a parent company and its subsidiaries, presenting it as one entity.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including balance sheets, income statements, and more.

50% Interest

A financial or ownership stake in an entity or asset, where the holder owns or is entitled to one-half of the interest in the subject matter.

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but does not grant control over the company.