Which of the Following Sample Planning Factors Would Influence the Sample

question 25

Multiple Choice

Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account?

• A)Expected amount of misstatement but not the measure of tolerable misstatement.
• B)Expected amount of misstatement and the measure of tolerable misstatement.
• C)Measure of tolerable misstatement but not the expected amount of misstatement.
• D)Neither the expected amount of misstatement nor the measure of tolerable misstatement.

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Definitions:

Net Income

The ultimate earnings of a company after all deductions, including expenses and taxes, from revenue.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Equity in Income

The share of income from investments in associates over which the investor has significant influence but does not control.