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NEW QUESTION: 1
A. Option A
B. Option C
C. Option B
D. Option D
Answer: A
NEW QUESTION: 2
Your customer wants to include confidential information in the planning process. This information should be
viewed by the HR team. How can you achieve this?
Please choose the correct answer.
Response:
A. Set the includeCompliance="HR" in the compensation plan template XML.
B. Configure a custom field for the confidential data, and use role-based permissions to make the field
visible for HR employees.
C. Configure a custom field for the confidential data, and set field visibility to 'hide' for everyone except
HR employees.
D. Configure a custom field for the confidential data, and set field visibility to 'view' for HR employees.
Answer: B
NEW QUESTION: 3
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. The asset account is fairly stated because the tolerable misstatement exceeds the net of projected
actual overstatements and understatements.
C. 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.
D. The asset account is fairly stated because the total projected misstatement is less than the tolerable
misstatement.
Answer: C
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.
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