If a Customer's Account Was Recorded at $45,000,the Audited Value

question 9

Multiple Choice

If a customer's account was recorded at $45,000,the audited value was $30,000,and the sampling interval was $30,000,the projected misstatement would be:

• A)$10,000.
• B)$15,000.
• C)$20,000.
• D)$30,000.

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Definitions:

Income Tax Expense

The accounting expense associated with the income taxes a company is obligated to pay to governmental authorities based on its taxable income.

Tax Rate

A percentage at which an individual or corporation is taxed; the tax authority sets it, and it can vary based on income, property value, sales price, etc.

Business Combination

The coming together of separate entities or businesses into one reporting entity via a merger, acquisition, or consolidation.

Business Combination

The process of merging two or more companies into one, through various forms such as mergers, acquisitions, or consolidations.