Which of the Following Would Not Cause the Audit Team

question 88

Multiple Choice

Which of the following would not cause the audit team to select a larger sample of items under a monetary unit sampling application?

• A) A reduction in the risk of incorrect acceptance from 10 percent to 5 percent.
• B) An increase in the tolerable misstatement from $30,000 to $60,000.
• C) An increase in the expected misstatement from $20,000 to $40,000.
• D) All of the above would result in selecting a larger sample.

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Definitions:

Analyzing

The process of examining data or details systematically to understand their structure, uncover relationships, and extract meaningful information.

Chief Information Officer

An executive responsible for managing and implementing technology and information systems within an organization.

Information Systems

Systems that manage and process data to support decision-making and operations in an organization.

Big Data

Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making; complex structured or unstructured sets of information that traditional processing applications are unable to analyze.