Which of the Following Is a Factor That the Auditor

question 84

Multiple Choice

Which of the following is a factor that the auditor should consider when choosing between nonstatistical and statistical sampling?

• A)Whether the audit staff is adequately trained to use statistical sampling.
• B)Whether the population lends itself to a random-based selection method.
• C)Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion.
• D)All of the above.

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Definitions:

Wages Expense

The total amount of money paid to employees for work performed, reported on the income statement.

Clawback Provisions

Terms included in contracts that require an individual to return money previously earned, often used to reclaim bonuses or other compensation under certain conditions.

Whistleblower Provisions

Regulations and policies that protect individuals who report illegal or unethical activities within an organization.

Sarbanes-Oxley Act

A U.S. federal law that aimed to protect investors by making corporate disclosures more reliable and accurate, enacted in response to financial scandals.