Before Selecting a Sample, an Auditor Will Use Professional Judgment

question 34

Multiple Choice

Before selecting a sample, an auditor will use professional judgment to

• A) set the required level of confidence.
• B) set the tolerable error rate.
• C) select an appropriate population for testing.
• D) all of the above

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the appropriate periods.

December Rent

A specific expense related to the leasing of property or space that is due in the month of December.