For a Given Audit Procedure, the Evidence Obtained from a Sample

question 34

Multiple Choice

For a given audit procedure, the evidence obtained from a sample of 200 would ordinarily be:

• A) more sufficient than from a sample of 100.
• B) less competent than from a sample of 100.
• C) less sufficient than from a sample of 100.
• D) more competent than from a sample of 100.

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows within a defined period.

Operating Activities

Part of cash flow that represents the revenues and expenses directly related to the core business operations.

Financial Statements

A set of formal records that outline the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.