To Determine Whether the Account Balance or Class of Transactions

question 65

Multiple Choice

To determine whether the account balance or class of transactions is materially misstated,the auditor

• A)determines the tolerable misstatement from the sample results and compares this amount to the projected misstatement allocated to the account balance or class of transactions
• B)determines the projected misstatement from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions
• C)determines the expected deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions
• D)determines the actual deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions

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Definitions:

Psychological Inhibitions

Mental or emotional blocks that prevent an individual from expressing their thoughts, feelings, or desires freely.

Psychoanalytic Therapy

A therapeutic approach developed by Freud that aims to explore the unconscious mind's role in shaping behavior, often through dream interpretation and free association.

Transference

In psychoanalysis, the process by which patients project feelings about important people in their lives onto the therapist.

Unusually Close

Describes a relationship or bond that is more intimate or connected than is common or expected.