A Sequential Sampling Plan Usually Consists of Two to Four

question 97

Multiple Choice

A sequential sampling plan usually consists of two to four groups.Once the auditor has considered control deviations in the first group of sampling units,he decides whether to

• A)accept the assessed level of control risk as planned,without examining additional sampling units
• B)stop sampling because the tolerable rate of deviation cannot be achieved
• C)examine additional sampling units because sufficient information to support the assessed level of inherent risk has not been found
• D)sample additional units until the tolerable rate of deviation is achieved
• E)examine additional sampling units because sufficient information to support the actual level of control risk has not been found
• F)both A and B
• G)both B and E
• H)both C and D

Recognize when and how current tax assets and liabilities can be offset on consolidation within a group structure.

Identify exclusions to the application of AASB3 Business Combinations.

Understand the allocation of the cost of a business combination and the recognition of goodwill.

Recognize the circumstances under which a deferred tax liability is not required to be recognized in the value of an investment in a subsidiary increases.

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Definitions:

RC Parallel Circuit

An electrical circuit consisting of resistors (R) and capacitors (C) connected in parallel, affecting the total impedance and phase angle.

R

Often used as a symbol for resistance in electrical circuits, measured in ohms (Ω).

Phase Angle

The measure of the difference in phase between two sinusoidal waveforms, which can affect how circuit components like capacitors and inductors respond to AC power.

Total Current

The sum of all electrical currents flowing through a circuit or system.