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

question 60

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 material misstatement
• C)determine the nature,timing,and extent of internal control procedures
• D)establish an amount below which misstatements will always be evaluated as immaterial

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Definitions:

Plan Of Termination

A proposed strategy or arrangement for concluding operations, typically associated with business closures or ending specific contracts.

Expected Completion Date

The projected date when a project or task is anticipated to be finished.

Projected Unit Credit Method

An actuarial technique used to estimate the present value of defined benefit obligations and related current service costs for pension plans.

Long Service Leave Obligations

Obligations to employees arising from their entitlement to long service leave, a form of employee leave based on extended service to an employer.