The Amount by Which a Projected Misstatement in an Account

question 72

Multiple Choice

The amount by which a projected misstatement in an account balance or class of transactions differs from an actual misstatement as a result of the sample not being representative of the population would typically arise from:

• A)A misunderstanding of accounting principles.
• B)Sampling risk.
• C)Management override of an internal control policy or procedure.
• D)Risk of incorrect acceptance.

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Definitions:

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Optimism

A mindset marked by optimism and assurance in achieving success and a bright outlook for the future.

Confidence

The feeling or belief in one's abilities or qualities, typically leading to a sense of self-assurance.

Positive Psychological Attributes

Traits or qualities of an individual that contribute to their overall psychological well-being, such as optimism, resilience, and gratitude.