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54. The design of a PPS sample requires the auditor to determine all of
the following except (Points: 4)
detection risk.
inherent risk.
tolerable misstatement.
expected misstatement in the account balance.
55. Which of the following is the best example of the control objective
in the revenue cycle that all transactions are recorded accurately?
(Points: 4)
Sales are recorded at the invoice price expected to be collected
from customers.
Sales orders have sequential numbering.
Recorded sales transactions are evidenced by valid invoices and
shipping documents.
Credits to customer accounts are classified as liabilities.
56. In an audit of financial statements, the risk of the high rate of
return of products sold includes that of (Points: 4)
sales that are recorded improperly.