Which of the Following Statements Is Incorrect

question 28

Multiple Choice

Which of the following statements is incorrect?

• A) When detection risk is set as high, an auditor will require a high level of confidence that the transactions and accounts are not materially misstated.
• B) An auditor may decide to stratify the population before selecting a sample from it.
• C) An auditor will use professional judgment to determine the tolerable error and required level of confidence.
• D) An auditor will use professional judgment when considering what would be considered an error within the population tested.

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Definitions:

Abandonment

The act of relinquishing property, rights, or responsibilities without the intention of reclaiming them at a later date.

Leased Premises

Property rented under a lease agreement, where the lessee has the right to occupy and use the property for a specified term.

Rent Default

The failure to pay rent as stipulated in a lease agreement, potentially leading to eviction or legal action.

Eviction Proceedings

The legal process by which a landlord obtains a court order to remove a tenant from a leased property due to a violation of the lease agreement.