Which of the Following Is a Correct Statement with Respect

question 56

Multiple Choice

Which of the following is a correct statement with respect to evaluating results when using nonstatistical sampling for substantive tests?

• A)When the projected misstatement exceeds the tolerable misstatement,the auditor should conclude that the population is not misstated.
• B)The closer the projected misstatement is to the tolerable misstatement,the higher the risk of material misstatement.
• C)When the projected misstatement is equal to zero,the auditors may conclude with certainty that no misstatements exist in the account.
• D)When the projected misstatement percentage exceeds the risk of incorrect acceptance the auditors will generally conclude that the population is materially misstated.

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Definitions:

Verbal Communication

The use of spoken words to convey information, ideas, or feelings.

Appropriation

The act of taking something for one's own use, generally without the owner's permission.

Exclusive Right

A legal provision granting someone the sole permission to engage in a particular activity or use a specific property.

Law of Torts

The body of laws governing civil wrongs that allow the injured party to receive compensation from those responsible for causing the harm.