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.

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Definitions:

Drop-in-the-bucket Problem

A metaphorical expression indicating a situation where the effort or resources are too insignificant to make a noticeable difference in a larger context.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by everyone and one person's use doesn't reduce availability to others.

Common Resource

A resource like air or water that offers users tangible benefits but is difficult to exclude non-payers from using, often leading to overuse.

Common Resource

A type of good that is non-excludable and rivalrous, such as air or a fishing area, leading to potential overuse or depletion.