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.

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Definitions:

Social Reality

refers to the sum of social facts, relationships, and institutions that society agrees upon and constructs collectively.

Learning Theory

A theoretical framework describing how knowledge is absorbed, processed, and retained during learning, involving cognitive, emotional, and environmental influences as well as prior experience.

Acculturation Theory

A theory that explains the process of cultural change and adaptation when individuals from different cultures come into direct contact, leading to changes in cultural patterns of either or both groups.

Resocialization Theory

Refers to the process by which one's sense of social values, beliefs, and norms are re-engineered. This process is often done through an intense social process that may involve significant changes in social environment.