Which of the Following Would Be a Subsequent Discovery of Facts

question 91

Multiple Choice

Which of the following would be a subsequent discovery of facts which would not require a response by the auditor?

• A)Discovery of the inclusion of material nonexistent sales
• B)Discovery of the failure to write off material obsolete inventory
• C)Discovery of the omission of a material footnote
• D)Discovery of management's intent to increase selling prices in the future

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Definitions:

Systematic Variance

The part of variance in a set of data that is attributable to identified sources or factors, as opposed to random or error variance.

Error Variance

Random variability in a set of scores that is not the result of the independent variable. Statistically, the variability of each score from its group mean.

Between-Groups Variance

captures the differences in means across different groups in an experiment, reflecting how much group members vary from each other overall.

Within-Group Variance

The variation of observations within a single group or category, measuring how much individual scores differ from the mean of that group.