Which of the Following Set of Conditions Would Provide the Auditor

question 2

Multiple Choice

Which of the following set of conditions would provide the auditor with the smallest sample size under monetary unit sampling (RIA = risk of incorrect acceptance,EM = expected misstatement,TM = tolerable misstatement,PS = population size) ?

• A)RIA = 5 percent,EM = $7,500,TM = $15,000,PS = $150,000.
• B)RIA = 5 percent,EM = $5,000,TM = $10,000,PS = $200,000.
• C)RIA = 5 percent,EM = $2,000,TM = $10,000,PS = $100,000.
• D)RIA = 5 percent,EM = $7,500,TM = $15,000,PS = $300,000.

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Definitions:

Strategic Thinking

The ability to anticipate, envision, maintain flexibility, and work with others to initiate changes that will create a viable future for an organization.

Serial Entrepreneurs

describes individuals who repeatedly start new businesses and take on the risk of being an entrepreneur, moving from one venture to the next.

Entrepreneurship

The process of establishing a company or companies, bearing financial uncertainties with the aspiration for gains.

Entrepreneurship

The process of designing, launching, and running a new business, often characterized by innovation, risk-taking, and the pursuit of profit.