Which of the Following Is Not an Item the Auditor

question 15

Multiple Choice

Which of the following is not an item the auditor needs to determine in designing sampling for substantive testing?

• A)The audit objective.
• B)The method of selecting a sample.
• C)Expected misstatement conditions.
• D)Expected deviation rate.

Analyze and interpret financial data to make informed business decisions.

Understand the closing process of accounts at the end of a fiscal period.

Develop an understanding of the components of financial statements.

Understand the structure and presentation of the income statement and the significance of its items.

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Definitions:

Interest Earned

The amount of interest generated from an investment or savings over a certain period of time.

Account

A record or statement of financial expenditure and receipts relating to a specific period or purpose; also used to refer to a customer's relationship with a financial institution.

Simple Interest

Interest computed solely on the initial amount invested, excluding any previously earned interest.

Investment

The undertaking of investing resources, usually capital, with the foresight of amassing income or profits.