In the Study of Internal Control,the Auditor Uses Sampling to Compare

question 90

Multiple Choice

In the study of internal control,the auditor uses sampling to compare the ____ to the _____.

• A) error; overall materiality level
• B) sampling risk; precision
• C) deviation rate; tolerable rate of deviation
• D) precision interval; upper limit on misstatement

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Definitions:

Flexible Budget

An adaptable financial plan that changes according to the actual output levels or activities of a business.

Units

A measure of product quantity, either as individual items or a standard measurement used for inventory and production.

Client-Visits

The activity of going to see clients in person for business purposes such as consultations, sales presentations, and relationship building.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for a more accurate comparison of actual to budgeted expenses.