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Consider the following information for inventory for your client: Book Value of Inventory 3,000,000 Book Value of Items Sampled 100,000 Audited Value of Items Sampled
Consider the following information for inventory for your client:
Book Value of Inventory | 3,000,000 |
Book Value of Items Sampled | 100,000 |
Audited Value of Items Sampled | 98,000 |
Total Amount of Overstatement | 2,000 |
Tolerable Misstatement | 75,000 |
You use the sample misstatement ratio to calculate the projected misstatement for the inventory account as a whole. If you have no other misstatement in your audit, what report will you issue for your client?
Question 9 options:
Unqualified Opinion | |
Qualified Opinion | |
Adverse Opinion | |
Disclaimer Opinion |
Which of the following reports would an auditor issue if she finds a material misstatement that is not pervasive across the financial statements?
Question 13 options:
Unqualified Opinion | |
Qualified Opinion | |
Adverse Opinion | |
Disclaimer of Opinion |
Type I error in audit sampling can lead to:
Question 14 options:
Lower audit fees | |
More audit work | |
Less audit work | |
Higher audit fees |
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