Which One of the Following Is a Proper Course of Action

question 54

Multiple Choice

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

• A)The auditor can ask the client to correct the known misstatements.
• B)The auditor will analyze the detected misstatements for some common problems.
• C)The auditor can expand the sample.
• D)All of the above.

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Definitions:

Exponentially Smoothed

A technique used in time series analysis to smooth data points by assigning exponentially decreasing weights over time.

Four-period Centered Moving Averages

A technique used to smooth out data series to identify the underlying trend, calculated by averaging each set of four consecutive data points.

Time Periods

Distinct intervals of time that can have varying lengths and are often used for measurement, analysis, or comparison purposes.

Seasonal Variation

Fluctuations in statistical or economic data that occur at regular intervals due to seasonal patterns.