The Amount by Which a Projected Misstatement in an Account

question 91

Multiple Choice

The amount by which a projected misstatement in an account balance or class of transactions differs from an actual misstatement as a result of the sample not being representative of the population would typically arise from

• A) a misunderstanding of accounting principles.
• B) sampling risk.
• C) management override of an internal control policy or procedure.
• D) risk of incorrect acceptance.

---

Definitions:

Sustain

To maintain or keep something going over time, especially under challenging circumstances.

Hedgehog Concept

A strategic approach that focuses on simplifying complexity to find the intersection between what you are passionate about, what drives your economic engine, and what you can be the best at.

Diversify

To diversify means to broaden or vary a range of products, investments, skills, etc., to reduce risk or increase the chance of success or improvement.

Knowledge Application

The process of applying acquired knowledge in real-world contexts to solve problems or achieve specific outcomes.