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:

Legal Services

Professional services provided by lawyers or legal practitioners concerning consultations, legal documentation, representation, and proceedings in court.

Household Electricity

Electrical energy supplied to homes for powering appliances, lighting, and heating.

Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Telephone Services

The provision of telecommunication facilities enabling voice communication over distances.