In Testing Account Balances,haphazard Sampling Is an Acceptable Method of Sampling

question 17

Multiple Choice

In testing account balances,haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be which of the following?

• A)Statistically sound.
• B)Representative of the population.
• C)Representative of the sample.
• D)In the upper stratum.

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Definitions:

Appraisal Rights

Legal rights that allow shareholders to demand an independent evaluation of a company's shares during certain transactions.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Foreign Corporations

Businesses that are incorporated in one country but are registered to do business in other countries outside of their home jurisdiction.

Merger

A combination of two or more corporations in which only one of the corporations continues to exist.