When Evaluating Sample Test Results, Which of the Following Statements

question 21

Multiple Choice

When evaluating sample test results, which of the following statements is incorrect?

• A) If an auditor discovers errors when testing transactions or account balances, they will need to project the error to the population being tested.
• B) An auditor will not consider whether the population was stratified before being sampled.
• C) If an error is considered to be unique it will be removed before projecting remaining errors to the population.
• D) If the rate of deviation exceeds the tolerable rate the auditor will extend their testing.

Understand how to properly request actions or adjustments in a professional manner.

Grasp the principles of responding to claims or adjustment requests, including when the customer or company is at fault.

Articulate the importance of maintaining goodwill and encouraging positive future interactions in business communication.

Develop skills in structuring and writing procedural and personalized business communications.

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Definitions:

Strict Product Liability

A doctrine in tort law that makes manufacturers, distributors, or sellers liable for any defects in the products they market, irrespective of negligence.

Manufacturer

An individual or company that makes goods for sale using raw materials and parts, typically in a large-scale operation involving machinery.

Seller

A seller or company presenting products or services for acquisition to buyers or other enterprises.

Mortgage Loan

A loan used to purchase property or real estate, which is then used as collateral for the loan.