Which of the Following Is the Least Likely Outcome When

question 76

Multiple Choice

Which of the following is the least likely outcome when the upper limit on misstatements exceeds the tolerable misstatement?

• A)The auditor would be exposed to the risk of incorrect rejection.
• B)The auditor would be exposed to an efficiency loss.
• C)The auditor would consider expanding the sample to evaluate additional transactions or components of the account balance.
• D)The auditor would conclude that the account balance is fairly stated.

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Definitions:

Event Expense

Event expense refers to the costs incurred in organizing, hosting, or participating in a specific event.

Promises of Payment

Obligations or commitments by one party to pay another, often formalized through instruments like notes or bonds.

General Ledger

A comprehensive accounting record of all transactions that affect a company, summarized by account.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.