An Auditor Is Confirming a Population of Accounts Receivable for Monetary

question 8

Multiple Choice

An auditor is confirming a population of accounts receivable for monetary correctness. The population totals $2,000,000 and a sample of 200 confirmations is obtained. Upon audit, no misstatements are uncovered in the sample. Assuming an ARIA of 10%, the confidence factor would be 2.31. Applied to a sampling interval of $10,000, the upper misstatement bound is calculated as

• A) $462.
• B) $4,329.
• C) $23,100.
• D) $865,801.

---

Definitions:

Euphoric Joy

An intense state of happiness and well-being that can sometimes be disproportionate to the actual situation, occasionally observed in various psychiatric conditions.

Explanation

The act of making something clear or understandable by describing the relevant facts or ideas.

Social Reinforcements

Positive or negative stimuli provided by others that increase the likelihood of a behavior being repeated.

Helplessness Theory

A psychological theory suggesting that individuals who believe they have no control over negative events are more likely to feel helpless and develop depressive symptoms.