Multiple Choice
If the projected misstatement is less than the tolerable misstatement,the auditor must
A) give appropriate consideration to the sampling risk in the determination of whether the projected misstatement plus sampling risk is greater than the tolerable misstatement
B) give appropriate consideration to the sampling risk in the determination of whether the projected misstatement plus sampling risk is less than the tolerable misstatement
C) gather additional evidence to determine the amount of the material misstatement
D) gather additional evidence to determine the amount of the actual tolerable misstatement
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Sampling methods for substantive samples include<br>A)skip random
Q21: The auditor gathers evidence about whether balance
Q22: Audit risk is<br>A)the risk that material misstatements
Q23: The auditor believes that the characteristics of
Q24: Nonstatistical sampling<br>A)is never a more effective way
Q26: In a nonstatistical substantive test of transactions
Q27: For a statistical sample,sampling risk is determined
Q28: If the projected misstatement is greater than
Q29: Tolerable misstatement is defined as<br>A)the level of
Q30: The population for a substantive test of