The Probability That an Auditor's Conclusion Based on a Sample

question 44

Multiple Choice

The probability that an auditor's conclusion based on a sample might differ from the auditor's conclusion based on an audit of the entire population identifies the concept of ________.

• A)sampling risk
• B)confidence levels
• C)statistical sampling
• D)tolerable rate and the expected deviation rate

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Definitions:

Section 5

Often refers to a specific section of a larger act or law, needing explicit context, such as Section 5 of the Federal Trade Commission Act related to unfair or deceptive acts or practices.

1933 Act

The U.S. Securities Act of 1933, a federal statute that regulates the offer and sale of securities to protect investors by requiring sellers to disclose significant information concerning securities being offered.

Exemption

A release from some burden, duty, or obligation; a grace; a favor; an immunity; taken out from under the general rule, not to be like others who are not exempt.

Business Combination

A transaction where two or more entities come together to form a consolidated enterprise through mergers, acquisitions, or other forms of corporate restructuring.