As the Expected Misstatement Is Large Relative to the Tolerable

question 31

Multiple Choice

As the expected misstatement is large relative to the tolerable misstatement,the audit team would most likely

• A)Increase their degree of reliance on internal controls.
• B)Consider the possibility of an increased level of tolerable misstatement.
• C)Increase the sample size.
• D)Decrease the sample size.

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Definitions:

Phosphoglyceraldehyde (PGAL)

A three-carbon molecule formed during the Calvin cycle of photosynthesis and glycolysis in cellular respiration.

Carbon Dioxide

Carbon dioxide is a colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Phosphoglyceraldehyde (PGAL)

A three-carbon sugar molecule involved in the Calvin cycle of photosynthesis and also in glycolysis, a key step in cellular respiration.

Sugar Production

The process of extracting or synthesizing sugar from various sources for consumption.