Which of the Following Statements Is Not True with Respect

question 118

Multiple Choice

Which of the following statements is not true with respect to the calculation of the upper limit on misstatements?

• A) The tainting percentage is determined based on the difference between the recorded balance and the audited balance.
• B) A separate incremental allowance for sampling risk is calculated for each misstatement discovered by the auditor.
• C) If no misstatements are detected, the basic allowance for sampling risk equals zero.
• D) The projected misstatement is determined by multiplying the sampling interval by the tainting percentage.

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Definitions:

Autonomic

Relating to the autonomic nervous system, which controls involuntary actions of the body such as heart rate and digestion.

Sympathetic

Relating to the sympathetic nervous system, which triggers the body's rapid involuntary response to dangerous or stressful situations; also means showing understanding or compassion toward others.

Alarm Phase

The initial phase of the stress response, where the body undergoes various physiological changes to combat stress.

Stress Response

The body's reaction to any change that requires an adjustment or response, involving physical, emotional, or cognitive components.