Which One of the Following Issues Need Not Be Addressed

question 94

Multiple Choice

Which one of the following issues need not be addressed when planning an audit sample to test control procedures?

• A)Audit objective of the test
• B)Minimum rate of control procedure failure
• C)Expected rate of control procedure failure
• D)Auditor's allowable risk of assessing control risk too low

---

Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment by calculating the present value of expected cash flows minus the initial investment cost.

Average Rate of Return

A metric used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Capital Investment Proposals

Suggestions or plans for spending on long-term assets intended to improve a company's profitability in the future.

Cash Payback Period

The duration required for an investment to generate cash flows sufficient to recoup the initial outlay.