Law,CPA Is Using Nonstatistical Sampling in His Examination of Jye

question 61

Multiple Choice

Law,CPA is using nonstatistical sampling in his examination of Jye Company's accounts receivable.The recorded balance of Jye's accounts receivable was $750,000.Law selected a sample of customer accounts for examination,which were recorded at $50,000.Based on the responses received from accounts receivable confirmations,Law determined an audited value of $45,000 for the accounts receivable. If tolerable misstatement is $60,000,which of the following statements is not true?

• A) The actual misstatement identified by Law is $5,000.
• B) The estimated account balance would be $825,000.
• C) Law would conclude that the account balance is not fairly stated, since the estimated misstatement is greater than the tolerable misstatement.
• D) Law is not able to provide a quantitative conclusion as to the exposure to the risk of incorrect acceptance.

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Definitions:

Male-Dominated World

A social system or environment where men hold the primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Critical Theory

A perspective that views the world as socially constructed through communication but sees underlying systems of power as shaping how this social construction process occurs.

Neo-Marxist Theory

An approach that updates Marxist theory to consider the socio-economic complexities of modern societies, focusing on power dynamics and class relations.

Frankfurt School

A group of mid-20th-century theorists who combined Marxist economic analysis with Freudian psychoanalysis to critique mass culture, authoritarianism, and the commodification of culture.