Law,CPA Is Using Nonstatistical Sampling in His Examination of Jye

question 87

Multiple Choice

Law,CPA is using nonstatistical sampling in his examination of Jye Company's accounts receivable.The recorded balance of Jye's accounts receivable was $750,000.Law selected a sample of customer accounts for examination,which were recorded at $50,000.Based on the responses received from accounts receivable confirmations,Law determined an audited value of $45,000 for the accounts receivable. If tolerable misstatement is $60,000,which of the following statements is not true?

• A)The actual misstatement identified by Law is $5,000.
• B)The estimated account balance would be $825,000.
• C)Law would conclude that the account balance is not fairly stated,since the expected misstatement is greater than the tolerable misstatement.
• D)Law is not able to provide a quantitative conclusion as to the exposure to the risk of incorrect acceptance.

Recognize the need for creating a sense of urgency and building a supportive coalition in the unfreezing phase of planned change.

Acknowledge the complications associated with planned change in organizations and strategies to address them.

Understand different strategies for overcoming resistance to change.

Recognize the role of participation, persuasion, and empowerment in managing change.

---

Definitions:

Hydraulic Analyzer

A device used to measure, analyze, and verify the performance of hydraulic systems through various metrics such as pressure, flow, and temperature.

Circuit Flow

Circuit Flow describes the path and movement of electrical current through a circuit, indicating how electricity travels from the source, through various components, and back to the source.

Peak Pressure

The maximum pressure achieved during the combustion process in an engine cylinder, critical for engine performance evaluation.

Pump Flow

The rate at which a pump can move fluid through a system, typically measured in gallons per minute (GPM) or liters per minute (LPM).