The Auditor Uses Sampling for Substantive Tests of Balances and for Substantive

question 5

Multiple Choice

The auditor uses sampling for substantive tests of balances and for substantive tests of transactions to determine

• A)whether the financial statements accounts associated with the account balance or class of transactions are materially misstated
• B)whether the financial statements are materially misstated
• C)whether the balance sheet accounts associated with the account balance or class of transactions are materially misstated
• D)whether the income statement accounts associated with the account balance or class of transactions are materially misstated

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Definitions:

Attract

To draw closer or cause to come closer, often used in contexts of physical objects, people, or the interest one thing generates towards another.

Nutrient-holding Capacity

The ability of soil to retain essential nutrients, such as nitrogen, potassium, and phosphorus, which are necessary for plant growth.

Aeration

The process of increasing or maintaining the oxygen saturation of water in aquatic systems, often used to improve water quality and the health of aquatic organisms.

Water Infiltration

The process by which water on the ground surface enters the soil, replenishing groundwater and soil moisture.