The Amount by Which a Projected Misstatement in an Account

question 72

Multiple Choice

The amount by which a projected misstatement in an account balance or class of transactions differs from an actual misstatement as a result of the sample not being representative of the population would typically arise from:

• A)A misunderstanding of accounting principles.
• B)Sampling risk.
• C)Management override of an internal control policy or procedure.
• D)Risk of incorrect acceptance.

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Definitions:

Organizing

Organizing divides up tasks and arranges resources to accomplish them.

Controlling

Controlling, in management, involves monitoring performance, comparing it with goals, and taking corrective action as needed to ensure achievement of objectives.

Workforce Diversity

The range of differences among the members of an organization's workforce, including race, gender, age, culture, education, and more.

Demographic Trends

refer to observable patterns and changes in a population over time, including age, income, education, and family structure.