When Substantive Tests Performed Identify Errors or Exceptions,the Auditor's First

question 30

Multiple Choice

When substantive tests performed identify errors or exceptions,the auditor's first response is to:

• A)understand why the exception or error has arisen.
• B)qualify the audit report.
• C)report the client to ASIC.
• D)None of the above

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Definitions:

Credit Purchases

Transactions where goods or services are bought using credit rather than cash or debit, to be paid off at a later date.

Confidence Interval

A collection of values, sourced from statistical study of a sample, likely holding the unknown quantity of a population parameter.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.

T Distribution

A type of probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.