Which of the Following Does Not Have to Be Considered

question 74

Multiple Choice

Which of the following does not have to be considered in determining the initial sample size of a test of details?

• A) tolerable misstatement
• B) acceptable risk of incorrect rejection
• C) estimate of misstatements in the population
• D) acceptable audit risk

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Definitions:

Net Sales

Revenue from the sale of goods or services after deducting returns, allowances, and discounts.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those displayed in a bank statement to ensure consistency.

Incorrectly Recorded

Refers to entries or transactions that have been recorded inaccurately in the accounting records, requiring correction.

Cash Balance

The amount of money a company has in its cash accounts, including currency, coins, and balances in checking and savings accounts.