The Auditors Used Statistical Sampling for the Audit of Inventory

question 17

Multiple Choice

The auditors used statistical sampling for the audit of inventory and calculated an estimated total audited value of $1,100,000;the client's book value for inventory is $1,200,000.This misstatement is properly classified as a:

• A)Factual misstatement.
• B)Judgmental misstatement.
• C)Projected misstatement.
• D)Relevance misstatement.

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Definitions:

Psilocybin

A naturally occurring psychedelic compound produced by certain types of mushrooms, known for its role in producing psychoactive effects when ingested.

Mescaline

A psychedelic compound derived from certain cacti, known for its hallucinogenic effects.

LSD

Lysergic Acid Diethylamide, a potent psychedelic drug that induces hallucinations and altered sensory perception.

Cannabis

A drug derived from the Cannabis plant, used for recreational or medicinal purposes, known for its psychoactive properties.