When Evaluating Sample Test Results, Which of the Following Statements

question 57

Multiple Choice

When evaluating sample test results, which of the following statements is in?

• 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:

Known Liability

Obligations or debts that have been incurred and are measurable with a high degree of certainty.

Vacation Benefits

Employee benefits that provide paid or unpaid time off from work for holidays, vacations, and personal time.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expense to its earnings before interest and taxes.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, typically evident in the form of interest payments on loans, bonds, or credit lines.