In a Monetary-Unit Sampling Plan, the Upper Misstatement Limit Is

question 31

Multiple Choice

In a monetary-unit sampling plan, the upper misstatement limit is $11,200 and the risk of incorrect acceptance is 5%. This means that:

• A)tolerable misstatement is $11,200.
• B)there is a 95% chance that the actual misstatement in the account is $11,200 or more.
• C)there is a 95% chance that the actual misstatement in the account is $11,200.
• D)there is a 95% chance that the actual misstatement in the account is $11,200 or less.

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Definitions:

Cognitive Development

The progression of learning and cognitive processes, including thinking, reasoning, and problem-solving throughout life.

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An organizational system where items are ranked and categorized based on levels or degrees of importance or inclusiveness.

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The principle in cognitive development that certain properties of an object, such as volume or mass, remain the same despite changes in its form or arrangement.