You Are Assigned to Audit Accounts Payable for a Manufacturing

question 61

Multiple Choice

You are assigned to audit accounts payable for a manufacturing client. As part of the planning, your manager sets a tolerable misstatement amount of+/- $125,000. Your review of unpaid invoices indicates an understatement error of $25,253 from a sample of $675,467. The population value of A/P is $5,241,687 at October 31st. The lower amount of the tolerable misstatement assuming the client booked an adjusting entry for the known errors (rounded) is:

• A) $5,391,940.
• B) $5,241,687.
• C) $5,141,940.
• D) $5,266,940.

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Definitions:

Generativity

A concern for establishing and guiding the next generation, typically observed in middle adulthood.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychological development of human beings through eight stages from infancy to adulthood.

Midlife Transition

A period, usually occurring in middle adulthood, characterized by self-reflection, assessment, and frequently, significant life changes.

Levinson

A psychologist famous for his theory on adult development, proposing a sequence of life stages that individuals go through, each marked by specific challenges and tasks.