Which of the Following Would Not Result in the Audit

question 104

Multiple Choice

Which of the following would not result in the audit team's selecting a larger sample of controls for examination?

• A) A reduction in the risk of overreliance from 10 percent to 5 percent.
• B) An increase in the tolerable rate of deviation from 3 percent to 6 percent.
• C) An increase in the expected population deviation rate from 2 percent to 4 percent.
• D) All of the above would result in a larger sample of controls.

---

Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Exchange for Land

A transaction in which a piece of land is acquired in exchange for something of value, rather than a direct financial purchase.

Adjusted Trial Balance

A trial balance that reflects all adjustments made in accounting records, used to prepare financial statements.

Financial Position

Describes an entity's financial health, assessed by examining its assets, liabilities, and equity at a specific point in time.