What Is the Primary Objective of Testing All Individually Significant

question 24

Multiple Choice

What is the primary objective of testing all individually significant items rather than sample testing?

• A)To increase the audit risk at which a decision will be reached from the results of the sample selected.
• B)To increase sample size.
• C)To accept no sampling risk for items greater than tolerable misstatement.
• D)To increase the size of the confidence bound around the projected misstatement.

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Definitions:

Royals

Members of a royal family, typically referring to those with titles such as king, queen, prince, or princess.

Pennant

A flag that serves as a symbol of a sports team or a sign of victory in sporting competitions.

Red Giants

A phase in the life cycle of a star where it expands and cools after exhausting the hydrogen in its core, typically marked by a significant increase in size and a change in color to red.

White Dwarfs

are small, dense stars that represent the final evolutionary state of stars not massive enough to become neutron stars or black holes.