Which of the Following Statements Is Incorrect

question 28

Multiple Choice

Which of the following statements is incorrect?

• A) When detection risk is set as high, an auditor will require a high level of confidence that the transactions and accounts are not materially misstated.
• B) An auditor may decide to stratify the population before selecting a sample from it.
• C) An auditor will use professional judgment to determine the tolerable error and required level of confidence.
• D) An auditor will use professional judgment when considering what would be considered an error within the population tested.

Identify and calculate operating cash flow, capital spending, and net working capital.

Comprehend the difference between current assets, fixed assets, and the implications for net working capital.

Grasp the importance of cash flow from assets and its components.

Recognize the types of costs associated with a firm and their impact on financial statements.

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Definitions:

Type C Personality

Often described as a passive or stoic personality type that tends to suppress emotions, possibly associated with increased stress and susceptibility to illnesses.

Expressing Emotions

The act of conveying one's feelings to others through words, facial expressions, or other forms of communication.

TAT

Stands for Thematic Apperception Test, a psychological assessment tool where individuals create stories based on ambiguous pictures, aimed at uncovering their underlying motives, feelings, and attitudes.

Projective Tests

Psychological assessment tools where respondents project their unconscious thoughts and feelings onto ambiguous test stimuli.