Multiple Choice
In a nonstatistical substantive test of transactions for an income statement account,the auditor decides that sales revenue is materially misstated.In this case,the auditor might
A) investigate the misstatements in the account and recommend corrections
B) ask the client to investigate the misstatements in the account and correct them
C) increase the sample size and perform additional tests to identify the amount of the total misstatement in the income statement
D) increase the sample size and perform additional tests to reduce the amount of the total misstatement in the account
E) increase the sample size and perform additional tests to identify the amount of the total misstatement in the account
F) both A and B
G) both C and D
H) Both B and E
Correct Answer:
Verified
Correct Answer:
Verified
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
Q25: If the projected misstatement is less than
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
Q31: The known and likely misstatements will be