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:

House Painter

A professional tradesperson responsible for painting and decorating buildings, ensuring protection and enhancing aesthetic appeal.

Houses

Structures used as living quarters for one or more persons, typically families.

Diminishing Marginal Product

The principle stating that as additional units of a variable input are added to a fixed input, the additional output from each new unit of input will eventually decrease.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.