In a Nonstatistical Substantive Test of Transactions for an Income

question 26

Multiple Choice

In a nonstatistical substantive test of transactions for an income statement account,the auditor decides that sales revenue is materially misstated.In this case,the auditor might

• A)investigate the misstatements in the account and recommend corrections
• B)ask the client to investigate the misstatements in the account and correct them
• C)increase the sample size and perform additional tests to identify the amount of the total misstatement in the income statement
• D)increase the sample size and perform additional tests to reduce the amount of the total misstatement in the account
• E)increase the sample size and perform additional tests to identify the amount of the total misstatement in the account
• F)both A and B
• G)both C and D
• H)Both B and E

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Definitions:

Explicit

Referring to knowledge or information that is fully and clearly expressed or demonstrated, leaving no room for confusion or doubt.

External

Relating to, situated on, or connected with the outside or an outer part.

Orbital Frontal Cortex

A region of the brain located in the frontal lobes that is involved in the complex process of decision making and moderating social behavior.

Ventromedial Cortex

A region of the brain associated with decision-making, emotional responses, and the processing of reward and fear.