The following questions relate to nonstatistical and monetary
unit sampling. Choose the best response.
A number of...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The following questions relate to nonstatistical and monetaryunit sampling. Choose the best response.
A number of factors influence the sample size for a substantivetest of details of an account balance. All other factors beingequal, which of the following would lead to a larger samplesize?
Greater reliance on internal control
Greater reliance on substantive analytical procedures
Smaller expected frequency of errors
Smaller measure of tolerable misstatement
The risk of incorrect acceptance relates to
substantive tests and affects audit efficiency.
substantive tests and affects audit effectiveness.
tests of controls and affects audit efficiency.
tests of controls and affects audit effectiveness.
In a probability-proportional-to-size sample with a samplinginterval of $3,000, which of the following is true?
An overstatement error of $200 in an item recorded at $300 willresult in a projected error of $2,000.
An overstatement error of $700 in an item recorded at $3,500will result in a projected error of $600.
I only
II only
Both I and II
Neither I nor II
Answer & Explanation
Solved by verified expert
3.7 Ratings (371 Votes)
Question 1 The correct answer is D Smaller measure of tolerable misstatement Reason Tolerable misstatement refers to the level up to which misstatements are acceptable by the auditor If same is kept at a low level it means that the auditor will have to obtain more sufficient
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
