Which of the Following Statements Is Not Correct If the Actual

question 133

Multiple Choice

Which of the following statements is not correct if the actual misstatement is $1,000,the upper limit on misstatement is $10,000,and the tolerable misstatement is $12,000?

• A) There is a (1 minus the risk of incorrect acceptance) probability that the true misstatement in the account balance exceeds $10,000.
• B) The allowance for sampling risk is $9,000.
• C) There is a (1 minus the risk of incorrect acceptance) probability that the true misstatement in the account balance is less than $10,000.
• D) The account balance appears to be fairly recorded.

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Definitions:

Interpret

The act of explaining, understanding, or assigning meaning to something, such as language, actions, or events, often requiring a degree of analysis or contextual knowledge.

Abstract Ideas

Concepts that are not tangible or concrete, existing in thought or as an idea but not having a physical existence.

Practical Information

Useful and actionable data or knowledge that can be directly applied to tasks or problems.

Voluminous

Describing something as having great volume or size, or being very lengthy or detailed.