The Auditor Selects All Items Above $10 000, Which Comprise

question 52

Multiple Choice

The auditor selects all items above $10 000, which comprise 10 per cent of the items in the population and tests 100 per cent of these items. The auditor does not test items below $10 000. The misstatements found in audit testing total $20 000. Which of the following statements is false?

• A) The auditor cannot extrapolate the results of the audit testing to the population.
• B) The auditor has not used an audit sampling approach.
• C) The audit testing approach undertaken is not in breach of auditing standards.
• D) The auditor's best estimate of error in the population is $200 000.

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Definitions:

Tactile Hallucinations

Sensory perceptions of touch or movement on the body with no physical cause, often associated with certain mental health conditions.

Mnemonic Disturbance

A disruption in the ability to remember or recall information, often due to brain dysfunction or psychological stress.

Agnosia

A neurological disorder characterized by the inability to recognize and interpret sensory information, despite having functioning senses.

Hyperorality

A condition characterized by an increased desire to put objects into the mouth, often seen in neurological disorders.