Which of the Following Statements Is Incorrect

question 28

Multiple Choice

Which of the following statements is incorrect?

• A) When detection risk is set as high, an auditor will require a high level of confidence that the transactions and accounts are not materially misstated.
• B) An auditor may decide to stratify the population before selecting a sample from it.
• C) An auditor will use professional judgment to determine the tolerable error and required level of confidence.
• D) An auditor will use professional judgment when considering what would be considered an error within the population tested.

Calculate the selling price for products by applying a markup to unit product costs.

Determine the total job cost for specific jobs.

Analyze the impact of using a plantwide predetermined manufacturing overhead rate based on machine-hours.

Understand the procedure for marking up manufacturing costs to determine selling prices.