If the Upper Limit on Misstatements Exceeds Tolerable Misstatement, the Auditor

question 42

Multiple Choice

If the upper limit on misstatements exceeds tolerable misstatement, the auditor is least likely to

• A) Increase sample size.
• B) Conduct other substantive procedures.
• C) Adjust the account balance.
• D) Increase the risk of incorrect rejection.

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Definitions:

Psychogenic Approach

A perspective in psychology and medicine that attributes the cause of symptoms or disorders to psychological factors rather than organic or physiological bases.

Understanding Psychopathology

The study of abnormal thoughts, feelings, and behaviors, aiming to comprehend the nature, causes, and treatments of mental disorders.

Freud

An Austrian neurologist named Sigmund Freud, who established the field of psychoanalysis, employed conversational therapy to treat mental disorders between a psychoanalyst and their patient.

Abnormal Behaviour

Actions, thoughts, or feelings that are outside of societal norms and may indicate a psychological disorder or mental health issue.