When Conducting Substantive Testing, Which of the Following Is Not

question 32

Multiple Choice

When conducting substantive testing, which of the following is not a factor that influencthe sample size?

• A) an increase in the tolerable rate of deviation
• B) an increase in the auditor's assessment of the risk of material misstatement
• C) stratification of the population when appropriate
• D) an increase in tolerable misstatement

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Definitions:

Price Ratio

The proportionate relationship between the prices of two goods or services, indicating how many units of one good can be exchanged for one unit of another.

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Total Utility

The overall satisfaction or utility that a consumer derives from consuming a certain quantity of goods or services.

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.