Which of the Following Statements Is True Regarding the Identification

question 56

Multiple Choice

Which of the following statements is true regarding the identification and assessment of the risks of material misstatements by the auditor?

• A)Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the financial statement level.
• B)Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the assertion level.
• C)As part of brainstorming activities,the auditor should identify possible frauds that could occur.
• D)All of these statements are true.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, often used in the estimation of the mean.

Point Estimate

A single value or statistic that serves as the best guess or most plausible value of a population parameter based on sample data.

Sample Proportion

The fraction or percentage of the sample that represents a particular characteristic or attribute within the population.

Finite Population Correction Factor

A correction used in sampling to adjust for the effect of sampling without replacement from a finite population.