When Monetary-Unit Sampling Has Been Concluded and the Population Is

question 39

Multiple Choice

When monetary-unit sampling has been concluded and the population is not considered acceptable, which one of the following courses of action would NOT be appropriate for the auditor?

• A) Refuse to give an unqualified opinion.
• B) Request the client to correct the population.
• C) Increase the sample size to see if this may satisfy the auditor's tolerable misstatement requirements.
• D) Increase the tolerable misstatement amounts so that the error bounds are acceptable.

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Definitions:

Flood Control

Measures and strategies implemented to manage water levels and reduce the risk and impacts of flooding.

Tennessee Valley Authority

A federally owned corporation in the United States created in 1933 to provide navigation, flood control, electricity generation, and economic development to the Tennessee Valley, a region particularly affected by the Great Depression.

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy driven by individuals' pursuit of their own self-interest.

Government Involvement

The extent to which the government intervenes in the economy, which can range from regulation and tax policy to direct control or ownership of businesses.