If the Total Projected Error in an Account Balance Was

question 45

Multiple Choice

If the total projected error in an account balance was $3,248 and the tolerable error was set at $10,000, the auditor would:

• A) conclude that the errors uncovered are material.
• B) decide that further audit work was required.
• C) conclude that the errors detected are not material.
• D) conduct other tests aimed at the assertion being tested.

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Definitions:

Horn Effect

Attributing a variety of negative qualities to those you dislike.

Recency Effect

Tendency to attend to the most recent information observed about another person in order to form or modify an impression.

Interpersonal Perception

Process of selecting, organizing, and interpreting your observations of other people.

Interpretation

The act of explaining or understanding the meaning of something, such as a text, action, or event.