If the Total Projected Error in an Account Balance Was

question 75

Multiple Choice

If the total projected error in an account balance was $3,248 and the tolerable error was set at $10,000, the auditor would

• A) conclude that the errors uncovered are material.
• B) decide that further audit work was required.
• C) conclude that the errors detected are not material.
• D) conduct other tests aimed at the assertion being tested.

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Definitions:

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.

Consumer Demand Curve

illustrates the relationship between the price of a good or service and the quantity demanded by consumers over a period, typically showing an inverse relationship.

Diminishing Marginal Utility

The principle that says the additional satisfaction a consumer gains from consuming one more unit of a good or service will lessen with each additional unit consumed.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.