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:

Felony

A serious crime, typically one involving violence, and is more severe than a misdemeanor, leading to higher punishment.

Misdemeanor

A type of criminal offense that is less serious than a felony, usually punishable by a fine, probation, or short-term incarceration.

Mandatory Reporting Law

Laws requiring certain professionals to report cases of abuse, neglect, or other harm to appropriate authorities.

State Law

The legal rules and regulations that are established and enforced by individual states within a country, differing from federal laws.