Which of the Following Is Not Within the Class of Foreseen

question 63

Multiple Choice

Which of the following is not within the class of foreseen users of an accountant's work product?

• A)A prospective shareholder of the client.
• B)A lender bank when the accountant knows only that the client will use the financial statements to obtain a loan from an unspecified source.
• C)A bank when the accountant knows the client will rely on the financial statements as the basis for a loan from the bank.
• D)An investor if the accountant knows that the client is seeking capital from a select group of investors.

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Definitions:

Contingency Table

A table used in statistics to display the frequency distribution of variables to show the relationship between them.

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is in fact true; commonly set thresholds include 0.05 or 0.01.

Null Hypothesis

The null hypothesis is a statement or hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Critical Value

The threshold in a statistical test such that if the calculated test statistic is beyond this point, the null hypothesis is rejected.