Which of the Following Would Be an Example of Due

question 10

Multiple Choice

Which of the following would be an example of due care?

• A) Audit documentation only supplied by the client.
• B) Audit documentation is a copy of last year's workpapers.
• C) Audit documentation obtained by the auditor with reviews by supervisory personnel.
• D) Audit documentation with misapplication of GAAP.

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Definitions:

Point Estimate

A solitary figure or statistical measure employed to approximate the worth of a population parameter.

Confidence Interval

A portfolio of values, extracted from sampling efforts, believed to encapsulate the undiscovered value of a population attribute.

Normal Distribution

A balanced probability distribution around the mean, demonstrating that occurrences are more frequent near the mean than away from it.

Margin of Error

An indicator of the precision of an estimate in statistics, showing the range within which the true value is expected to lie with a certain level of confidence.