When Testing Controls,non-Sampling Risk Is the Risk That an Auditor

question 18

Multiple Choice

When testing controls,non-sampling risk is the risk that an auditor:

• A)does not select a sample
• B)both a and b
• C)designs tests that are ineffective
• D)none of the above

---

Definitions:

Profit Centers

Divisions or departments within an organization that are responsible for generating its income.

Management Performance Report

A document that evaluates and summarizes the effectiveness and efficiency of a company's management in achieving corporate objectives.

Controllable Fixed Costs

Fixed costs that management has the authority to increase or decrease, such as advertising expenses or research and development costs.

Contribution Margin

The amount by which a product’s selling price exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.