The Auditors' Failure to Recognize a Misstatement in an Amount

question 91

Multiple Choice

The auditors' failure to recognize a misstatement in an amount or a deviation in an internal control data processing procedure is described as a:

• A)Statistical error.
• B)Sampling misstatement.
• C)Standard error of the mean.
• D)Nonsampling error.

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Definitions:

Inferior Good

A good that has a negative income effect.

Goods

Physical items that satisfy human wants or needs and can be transferred or sold.

Price-Consumption Curve

Curve tracing the utility-maximizing combinations of two goods as the price of one changes.

Utility

A measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.