If the Result Obtained from a Particular Sample for Control

question 113

Multiple Choice

If the result obtained from a particular sample for control and substantive tests of transactions is critical to the formation of an audit opinion, which of the following is the most important to the auditor in concluding of the appropriateness and sufficiency of evidence gathered?

• A) acceptable risk of overreliance
• B) estimated population exception rate
• C) tolerable exception rate
• D) size of the population

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Definitions:

National Drug Store

A national drug store is a retail pharmacy chain that operates multiple locations across a country, providing medications, health products, and health care services.

Warehousing

The act of storing goods in a dedicated space for the purposes of distribution, inventory management, and cost efficiency.

Logistics System

A network designed to control the movement and storage of goods and services from origin to consumption.

Transportation

The movement of goods or people from one location to another, which is a critical component of the supply chain.