The Auditor Makes the Decision About Whether the Misstatements Found

question 67

Multiple Choice

The auditor makes the decision about whether the misstatements found in a substantive test of balances sample are material after

• A)determining if the misstatements are within the tolerance level
• B)determining if the misstatements are within the assurance level
• C)extrapolating misstatements from the sample to the population
• D)projecting misstatements from the sample to the population
• E)projecting misstatements from the population to the sample

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Definitions:

Fabrication Department

A specialized section of a manufacturing company where raw materials are assembled, shaped, or processed into finished goods.

Logistics Department

A segment within a company responsible for managing the efficient flow of goods, services, and information from point of origin to point of consumption to meet customer requirements.

Operating Divisions

Parts of a company that focus on the core business functions, often segmented by product line, service area, or geographic location.

Variable Costs

Expenses that change in proportion to the level of activity or volume of production in a business.