In Evaluating Whether There Is a Sufficiently Low Probability of Material

question 30

Multiple Choice

In evaluating whether there is a sufficiently low probability of material misstatement in the financial statements,the auditors accumulate:

• A)Factual misstatements in the financial statements.
• B)Judgmental misstatements in the financial statements.
• C)Factual and judgmental misstatements in the financial statements.
• D)Factual,judgmental and projected misstatements and an allowance for undetected misstatements in the financial statements.

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Definitions:

Cold Fusion

A hypothetical type of nuclear reaction that would occur at, or near, room temperature, compared to the high temperatures required for traditional nuclear fusion.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossibility) and 1 (certainty).

Notation P(A)

In probability theory, a notation representing the probability of event A occurring.