When Testing Controls, Non-Sampling Risk Is the Risk That an Auditor

question 13

Multiple Choice

When testing controls, non-sampling risk is the risk that an auditor

• A) designs tests that are ineffective.
• B) does not select a sample.
• C) both a and b
• D) none of the above

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Definitions:

Regulatory

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State Licensing Statute

Legislation enacted by a state that defines the requirements and standards for obtaining a professional license to legally work in a specific field within that state.

Fair Market Value

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The total amount of income generated by the sale of goods or services related to the company's primary operations.