When Deciding the Acceptability of the Population

question 57

Multiple Choice

When deciding the acceptability of the population,

• A) the methodology for deciding the acceptability of the population for attributes differs from determining the acceptability for nonstatistical sampling.
• B) before the population can be considered acceptable, the CUER determined on the basis of the actual sample results must be less than or equal to TER when both are based on the same ARO.
• C) when the CUER is greater than the TER, the auditor must increase the sample size.
• D) the CUER is compared with the TER in total, not for each attribute.

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Definitions:

Managing Director (MD)

The senior-most executive in an organization or business, typically responsible for strategy, decision-making, and day-to-day operations.

Board of Directors

A group of individuals elected by shareholders to oversee the activities and direction of a corporation.

Financial Performance

A measure of how well a company is using its assets to generate profits, often analyzed through financial statements like the income statement and balance sheet.