Which of the Following Factors Does an Auditor Need to Consider

question 64

Multiple Choice

Which of the following factors does an auditor need to consider in planning a particular audit sample for a test of control?

• A) Number of items in the population.
• B) Total dollar amount of the items to be sampled.
• C) Acceptable level of risk of assessing control risk too low.
• D) Tolerable misstatement.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically paid at a set rate over the life of the borrowing.

Notes Payable

Liabilities represented by written promises to pay a specified sum of money, usually with interest, by a certain date.

Notes Payable

A written agreement where the borrower promises to pay back a specified sum to the lender by a certain date.

Interest Expense

The amount a company has to spend over time for taking out loans.