In Which of the Following Situations Would the Auditor Be

question 65

Multiple Choice

In which of the following situations would the auditor be more likely to use monetary unit sampling as opposed to classical variables sampling?

• A)Larger expected misstatement: Yes; Concern with overstatements: Yes
• B)Larger expected misstatement: Yes; Concern with overstatements: No
• C)Larger expected misstatement: No; Concern with overstatements: Yes
• D)Larger expected misstatement: No; Concern with overstatements: No

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Definitions:

Evaluate Results

The process of analyzing outcomes to determine the effectiveness of actions taken and to inform future decisions.

Alternative Courses of Action

Different strategies or options available to an individual or organization when making decisions or solving problems.

Availability Bias

A cognitive bias that causes people to overestimate the importance or frequency of information that is readily available to them.

Confirmation Error

A cognitive bias that leads individuals to favor information or interpretations that confirm their pre-existing beliefs or hypotheses.