In Testing Accounts Receivable,an Auditor Sends Out Positive Confirmation Requests

question 3

Multiple Choice

In testing accounts receivable,an auditor sends out positive confirmation requests to 100 randomly selected customers.A customer returns the confirmation indicating that the balance is correct when,in fact,the balance is overstated.This is an example of:

• A)Projected misstatement.
• B)Sampling error.
• C)Standard error.
• D)Nonsampling error.

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Definitions:

Hemorrhage

Excessive bleeding or blood loss, either internally or externally.

Low-molecular-weight Heparin

A medication used to prevent and treat blood clots, characterized by its lower molecular weight compared to standard heparin, resulting in more predictable effects.

SCDs

Sequential Compression Devices; medical devices used to promote blood flow in the legs by applying sequential pressure.

Lower Extremity Circulation

The circulation of blood in the lower limbs of the body, which is crucial for delivering oxygen and nutrients to leg tissues and removing waste products.