When an Auditor Identifies Unexpected Misstatements or Errors, He/she Will

question 49

Multiple Choice

When an auditor identifies unexpected misstatements or errors, he/she will

• A) re-evaluate the effectiveness of internal controls and overall assessment of risk.
• B) plan to conduct predominately substantive tests.
• C) increase the level of tests of internal controls.
• D) none of the above

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Definitions:

Opposing Interpretations

Differing views or analyses of data, texts, or events, reflecting varied perspectives or understandings.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on sample data.

Generalize

To draw broad conclusions from specific instances, making the information applicable to a larger group or situation.

Population

The total number of inhabitants of a particular town, area, country, or the total number of individuals within a specific group or category.