As the Amount of Misstatements Expected in the Population Approaches

question 93

Multiple Choice

As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will

• A) decrease.
• B) increase.
• C) vary based on characteristics of the population.
• D) be unaffected.

---

Definitions:

Conditional Sales Contracts

Agreements that transfer the possession of goods from the seller to the buyer, but not legal ownership until certain conditions, typically final payment, are met.

Sale-on-approval

A transaction in which goods are delivered to a buyer with the understanding that the sale becomes final only if the buyer approves or is satisfied with the products.

Sale-or-return

A commercial arrangement where goods are delivered to a buyer who has the right to return the goods if they are not sold, within a stipulated period.

Voidable Title

A legal condition referring to a situation where a title or ownership can be invalidated at the discretion of one party due to certain conditions, such as fraud.