Which Statement Is Not Correct

question 95

Multiple Choice

Which statement is not correct?

• A)Auditors gather evidence using tests of controls and substantive tests.
• B)The most important element in determining the level of materiality is the mathematical formula.
• C)Auditors express an opinion in their audit report.
• D)Auditors compare evidence to established criteria.

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Definitions:

Interindustry Competition

The competitive relationship between firms or industries producing different goods or services that, while not direct substitutes, compete for the same consumer dollars.

Power Transmission

The process of transferring energy from its source to a location where it is used to perform work, typically involving electricity.

Homogeneous Oligopoly

A market structure where a few firms offer products or services that are virtually indistinguishable from one another.

Four-Firm Concentration Ratio

The percentage of total industry sales accounted for by the top four firms in an industry.