The Auditors' Failure to Recognize a Misstatement in an Amount

question 91

Multiple Choice

The auditors' failure to recognize a misstatement in an amount or a deviation in an internal control data processing procedure is described as a:

• A)Statistical error.
• B)Sampling misstatement.
• C)Standard error of the mean.
• D)Nonsampling error.

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Definitions:

Depositary Bank

A bank authorized to hold securities and other assets in custody for others, facilitating trading of securities and other financial transactions.

Midnight Deadline

A term indicating a deadline that occurs at 12:00 AM or the end of a particular day.

Governing by Statute

The process of ruling or managing an organization, entity, or country based on written laws passed by a legislative body.

Contractual Modifications

Changes or alterations mutually agreed upon by the parties involved in a contract.