If the Total Projected Error in an Account Balance Was

question 75

Multiple Choice

If the total projected error in an account balance was $3,248 and the tolerable error was set at $10,000, the auditor would

• A) conclude that the errors uncovered are material.
• B) decide that further audit work was required.
• C) conclude that the errors detected are not material.
• D) conduct other tests aimed at the assertion being tested.

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Definitions:

ADH

ADH, or Antidiuretic Hormone, is a hormone produced by the pituitary gland that regulates water balance in the body by controlling the concentration of urine.

Water Retention

The accumulation of excess fluids in the body tissues, often resulting in swelling, which can be caused by a variety of health conditions.

Dehydration

A condition resulting from the excessive loss of body water, impairing normal bodily functions.

Corpus Luteum

A temporary endocrine structure in female ovaries that secretes progesterone to regulate the menstrual cycle and maintain early stages of pregnancy.