An Auditor Has Determined That the Appropriate Sample Size for a Particular

question 64

Multiple Choice

An auditor has determined that the appropriate sample size for a particular audit procedure is 50. Which of the following methods can the auditor use to select the 50 items?

• A) Select the 50 items with the largest dollar amounts.
• B) Select the 50 items randomly.
• C) Select one week and examine the first 50 items.
• D) Any combination of the above three methods.

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Definitions:

Cost-Of-Living Constraints

Economic conditions influencing the amount of disposable income individuals have, affecting their living standards and purchasing power.

Compensation System

The complete package of pay and benefits that employees receive in exchange for their work, encompassing base salary, bonuses, benefits, and any other forms of remuneration.

Food Processing

The transformation of agricultural products into food, or of one form of food into other forms.

Legislated Constraints

Legal limitations or requirements that organizations must comply with in their operations, including those related to labor, safety, and environmental standards.