Two Factors That Are Considered by the Auditor in Determining

question 27

Essay

Two factors that are considered by the auditor in determining sample size for classical variables sampling but not MUS are the risk of incorrect rejection and the _______________________________________________.

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.