Which of the Following Situations Will Result in the Auditors

question 21

Multiple Choice

Which of the following situations will result in the auditors concluding that the risk of material misstatement is too high when using nonstatistical sampling for substantive tests?

• A)The projected misstatement exceeds the tolerable misstatement.
• B)The allowance for sampling risk exceeds the projected misstatement.
• C)The risk of incorrect acceptance exceeds the risk of incorrect rejection.
• D)The tolerable misstatement exceeds the sample net misstatement.

---

Definitions:

Institutional Power

is the control or influence that organizations or institutions have over societal norms, policies, and behaviors.

Malcolm X

An African American civil rights leader who advocated for the rights of African Americans through any means necessary, distinct from the nonviolent tactics of Martin Luther King Jr.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Income Gap

The disparity in income and wealth between different groups in society, often highlighting inequality between individuals, races, genders, or countries.