You Are Determining the Significance of the Following: You Set

question 102

Multiple Choice

You are determining the significance of the following: you set a 5% risk of assessing control risk too low and your computation of the upper deviation risk is 7%. What could you conclude?

• A) There is a 95% chance the deviation rate in the population is less than 5%.
• B) There is a 5% chance the deviation rate in the population is less than 7%.
• C) There is a 95% chance the deviation rate in the population exceeds 95%.
• D) There is a 5% chance the deviation rate in the population exceeds 7%.

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Definitions:

Intra-entity Transfer

Transactions involving assets, services, or funds between units or divisions within the same legal entity.

Consolidated Income Statement

A financial statement that presents the overall income of a corporation and its subsidiaries as a single entity.

Deferred

In finance, this term refers to transactions or events that are postponed to a future date.

Consolidated Worksheet

A tool used in the preparation of consolidated financial statements, summarizing the financial positions and operations of a parent company and its subsidiaries.