Which of the Following Is a Method of Eliminating Non-Sampling

question 58

Multiple Choice

Which of the following is a method of eliminating non-sampling risk?

• A)Proper supervision and instruction of the client's employees.
• B)Proper supervision and instruction of the audit team.
• C)The use of attributes sampling rather than variables sampling.
• D)Controls to ensure that the sample drawn is random and representative.

---

Definitions:

Greenmail Arrangement

A situation where a company buys back its own shares from a potential acquirer at a higher price to avoid a takeover attempt.

Pre-Offer Strategy

A plan devised prior to making an offer, typically in negotiation or bidding contexts, to maximize successful outcomes.

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.