In Which of the Following Cases Would the Auditor Be

question 3

Multiple Choice

In which of the following cases would the auditor be most likely to conclude that all of the items in an account under consideration should be examined rather than tested on a sample basis?

• A) Tolerable deviation is large and expected deviation is low.
• B) Tolerable deviation is small and expected deviation is high.
• C) Tolerable deviation is large and expected deviation is high.
• D) Tolerable deviation is small and expected deviation is low.

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Definitions:

Takt Time

The rate at which a product needs to be completed in order to meet customer demand.

Computerized Diagnostic

Systems or processes that use computer technology to automatically diagnose issues or faults within machinery, electronics, or software.

Operations Times

The total time involved in performing all operational activities, including processing and waiting times, within a production cycle.

Hybrid Automobiles

Vehicles that use a combination of internal combustion engines and electric motors for propulsion, aiming to increase fuel efficiency and reduce emissions.