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:

Produced

The act of creating, manufacturing, or bringing into existence goods and services.

Consumer Surplus

The disparity between what consumers are prepared and can afford to spend on a product or service compared to the actual amount they end up paying.

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Tariff Revenue

Income that governments earn from imposing taxes on imported goods to protect domestic industries or generate income.