Which Statement Is Not Correct

question 95

Multiple Choice

Which statement is not correct?

• A)Auditors gather evidence using tests of controls and substantive tests.
• B)The most important element in determining the level of materiality is the mathematical formula.
• C)Auditors express an opinion in their audit report.
• D)Auditors compare evidence to established criteria.

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Definitions:

Risky Securities

Financial instruments that carry a high level of risk, offering the potential for higher returns in exchange for greater likelihood of loss.

Risk Premiums

Additional returns demanded by investors for taking on higher risk, varying according to the perceived risk of the investment.

Probability Distribution

A function in statistics that enumerates all conceivable values and their associated probabilities for a random variable within a predetermined range.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the numbers in the set differ from the mean.