Which of the Following Set of Conditions Would Provide the Auditor

question 37

Multiple Choice

Which of the following set of conditions would provide the auditor with the smallest sample size under monetary unit sampling (RIA = risk of incorrect acceptance,EM = expected misstatement,TM = tolerable misstatement,PS = population size) ?

• A) RIA = 5%, EM = $7,500, TM = $15,000, PS = $150,000
• B) RIA = 5%, EM = $5,000, TM = $10,000, PS = $200,000
• C) RIA = 5%, EM = $2,000, TM = $10,000, PS = $100,000
• D) RIA = 5%, EM = $7,500, TM = $15,000, PS = $300,000

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Definitions:

Reception

Reception generally refers to the act or process of receiving or being received, often used to describe the area in a building where visitors are greeted.

Sensation

The process of sensing our environment through touch, taste, sight, sound, and smell.

Glaucoma

A group of eye conditions that can cause blindness by damaging the optic nerve, usually due to high eye pressure.

Sensory Deficit

A reduction or lack of the usual level of one or more of the senses, including sight, hearing, touch, taste, and smell.