When Determining Sample Size Under Monetary Unit Sampling,an Audit Team

question 76

Multiple Choice

When determining sample size under monetary unit sampling,an audit team does not need to make a judgment or estimate of

• A) Audit risk.
• B) Tolerable misstatement.
• C) Expected misstatement.
• D) Standard deviation of error.

---

Definitions:

Cash Flows

The overall volume of financial exchanges made into and from an organization, directly impacting its ability to cover short-term obligations.

Operating Activities

Operating activities relate to the primary activities of a business involving the production and delivery of goods and services, and are reflected in the cash flows from operations in financial reporting.

Financing Activities

Transactions with creditors and investors used to fund a company through borrowing or selling equity.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficiently assets are used to generate profit.