Which of the Following Statements Is In

question 21

Multiple Choice

Which of the following statements is in?

• 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 their professional judgement to determine the tolerable error and required level of confidence
• D) an auditor will use their professional judgement when considering what would be considered an error within the population tested

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Definitions:

Manufacturing Overhead

Factory-associated indirect expenses that arise during the manufacturing of a product.

Estimated Total

The projected summed amount or quantity determined through approximation or calculation at the outset of a project or for a specific period.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and manufacturing overhead.

Total Job Cost

The sum of all costs directly attributed to a specific job, including materials, labor, and overhead.