The Reliability of a Client's Internal Documentation Is Most Affected

question 88

Multiple Choice

The reliability of a client's internal documentation is most affected by which of the following?

• A)The auditor's independence.
• B)Management's motivation to misstate accounts.
• C)The type of audit report that will be issued.
• D)Management's ability to understand generally accepted audit standards.

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Definitions:

Infinite Population

An idealized concept of a population so large that its size is not diminished by the sampling process.

Standard Deviation

An estimator for the amount of disparity or spread found in a set of numerical values.

Sample Mean

The average value of a subset of a larger population, used to estimate the population mean.

Finite Population Correction

A statistical adjustment applied when sampling without replacement from a finite population, to improve the accuracy of estimates like means and proportions.