Which of the Following Is a Correct Statement with Respect

question 56

Multiple Choice

Which of the following is a correct statement with respect to evaluating results when using nonstatistical sampling for substantive tests?

• A)When the projected misstatement exceeds the tolerable misstatement,the auditor should conclude that the population is not misstated.
• B)The closer the projected misstatement is to the tolerable misstatement,the higher the risk of material misstatement.
• C)When the projected misstatement is equal to zero,the auditors may conclude with certainty that no misstatements exist in the account.
• D)When the projected misstatement percentage exceeds the risk of incorrect acceptance the auditors will generally conclude that the population is materially misstated.

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Definitions:

Actor-Observer Effect

A psychological phenomenon where people tend to attribute their own actions to situational factors while attributing others' actions to their character.

Actor's Behaviour

Refers to the actions and conduct of an individual, especially in a given situation or context.

Attribution Theory

A social psychology theory that explains how individuals pinpoint the causes of their own and others' behavior, emphasizing the role of belief in understanding the social world.

Situational Attribution

The process of attributing a person's behavior to external causes rather than to internal characteristics.