When Planning a Sample for a Substantive Test of Balances

question 14

Multiple Choice

When planning a sample for a substantive test of balances, an auditor should consider tolerable misstatement for the sample.This consideration should:

• A) not be changed during the audit.
• B) be related to preliminary judgments about materiality levels.
• C) not be adjusted for qualitative factors.
• D) be related to the auditor's business risk assessment.

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Definitions:

Social Necessity

Essential needs or requirements determined by social contexts and interactions, rather than individual preferences.

Brym

A reference to Robert Brym, a sociologist known for his works on sociology, including social movements and digital media's role in society.

Lie

An intentionally false statement made with the purpose of deceiving or misleading others.

Declining Significance

A concept that suggests the importance or influence of a particular factor, phenomenon, or entity is diminishing over time.