Which of the following statements is false when applying the technique? monetary

Question

Which of the following statements is false when applying the technique? monetary unit sampling (M US) acceptable risk of incorrect rejection (ARIR) is ordinarily not specified. Deted population misstatement rate (EPMR) is ordinarily set c. The population book value as equal to 1%. entire account balance or class of transactions. ) is ordinarily set as the total number of dollar units of the d. The tolerable e misstatement rate (TMR) is ordinarily set as a certain percentage of dollar amount allocated from the preliminary judgment about materiality PJAM).

Explanation / Answer

A. True. It is inversely related to sample size and based on auditor's planned detection risk and planned substantive tests. Thus ordinarily not specified.

B. False. Expected population misstatement rate is zero as in this method sample sample size are used.

C. True. Population book value= total number of$ units

D. True. Tolerable misstatement rate= certain percentage of $ allocated from preliminary judgement about materiality.

Do give your feedback!! Happy Learning :)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.