In Planning the Audit,the Auditor Makes Decisions About the Size

question 126

Multiple Choice

In planning the audit,the auditor makes decisions about the size of misstatements that will be considered material.These decisions allow the auditor to

• A)determine the nature,timing,and extent of inherent risk assessment procedures
• B)identify and assess the risk of misstatement
• C)determine the nature,timing,and extent of audit procedures
• D)establish an amount below which misstatements will always be evaluated as immaterial
• E)C and D

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Definitions:

Tenants In Common

Owners of an undivided interest in property, with each owner’s rights going to his or her heirs upon death rather than to the surviving co-tenants.

Interstate Highway

A network of controlled-access highways that forms part of the National Highway System in the United States, designed for high-speed vehicular traffic.

Farm-To-Market Road

A state or county road that connects rural or agricultural areas to market towns or cities.