When Performing Sampling,the Auditor Is Most Concerned with Which of the Following

question 52

Multiple Choice

When performing sampling,the auditor is most concerned with which of the following?

• A)Risk of incorrect rejection.
• B)Risk of incorrect acceptance.
• C)Risk of excess sample size.
• D)Risk of errors in the population.

---

Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.

Wholesale Price

The cost of goods sold in large quantities, usually to retailers rather than directly to consumers.