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NEW QUESTION: 1
An auditor established a $60,000 tolerable misstatement for an asset with an account balance of
$1,000,000. The auditor selected a sample of every twentieth item from the population that represented
the asset account balance and discovered overstatements of $3,700 and understatements of $200. Under
these circumstances, the auditor most likely would conclude that:
A. There is an unacceptably high risk that the tolerable misstatement exceeds the sum of actual
overstatements and understatements.
B. There is an unacceptably high risk that the actual misstatements in the population exceed the tolerable
misstatement because the total projected misstatement is more than the tolerable misstatement.
C. The asset account is fairly stated because the total projected misstatement is less than the tolerable
misstatement.
D. The asset account is fairly stated because the tolerable misstatement exceeds the net of projected
actual overstatements and understatements.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. Selection of every twentieth item results in a sample that is 5% (1/20 = .05) of the
population. The sample results indicate a net overstatement of $3,500 (= $3,700 $200), which is then
projected to the total population as $70,000 (= $3,500 / .05). (Alternatively, 3,500 × 20 = 70,000). Since the
projected misstatement of $70,000 exceeds the tolerable misstatement of $60,000, there is an
unacceptably high risk that the actual misstatement in the population will exceed the tolerable
misstatement.
Choice "B" is incorrect. Tolerable misstatement is compared to the projected misstatement, not to the
actual error in the sample.
Choices "C" and "D" are incorrect. The asset account is not fairly stated because the projected
misstatement exceeds the tolerable misstatement.
NEW QUESTION: 2
You are working on a new project in your city to construct an environmentally friendly landfill. The existing site is so undesirable that many residents have moved to other neighboring cities because of their proximity to it. However, even though the project has the support of the public, you need to have a number of hearings of the city's government before you are authorized to begin work. As you are in the planning phase of the project, you are waiting for these hearings to be scheduled and held before you can begin site preparation. These hearings are an example of______________
A. An item to be scheduled as a fragnet
B. An external dependency
C. A milestone
D. A mandatory dependency
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Some dependencies are external ones, and they involve a relationship between project activities and non project activities. In sequencing activities, the project management team must determine which dependencies are external as they are usually outside of the team's control.
NEW QUESTION: 3
A. Option D
B. Option C
C. Option A
D. Option B
Answer: D
NEW QUESTION: 4
A Fusioninsight HD cluster planned by a certain bank has 90 nodes. If 3 control nodes are planned, the recommended data nodes in the cluster are:
A. 0
B. 1
C. 2
D. 3
Answer: B
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