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:

Competitive Scope

The breadth of the field or market in which a company competes, including geographical reach, product range, and target customer segments.

Organizational Structure

The system of roles, responsibilities, and communication within a company, determining how activities are directed to achieve its objectives.

Geographical Distribution

The physical locations where a population, species, or commercial activity is found or targeted.

Investment

The allocation of resources, often money, into a venture with the expectation of generating income or profit over time.