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The Probability That an Auditor's Conclusion Based on a Sample

question 44

Multiple Choice

The probability that an auditor's conclusion based on a sample might differ from the auditor's conclusion based on an audit of the entire population identifies the concept of ________.


Definitions:

Profit Margin

A financial ratio representing the percentage of revenue that remains as profit after all expenses have been deducted.

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit.

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