Statistical Sampling Is Less Commonly Used for the Audit of Accounts

question 104

Multiple Choice

Statistical sampling is less commonly used for the audit of accounts payable than for accounts receivable because it is more difficult to:

• A) define the population.
• B) determine the tolerable exception rate.
• C) decide on attributes or variables sampling.
• D) mathematically calculate and interpret the results.

Comprehend the process of ratification and its applicability in binding principals to unauthorized acts.

Realize the extent of an agent’s authority in managing property and contracting for necessary repairs.

Recognize the conditions under which a principal’s ratification of a contract can be implied from conduct.

Identify the scenarios in which principals are liable for agents’ misrepresentations.

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Definitions:

ECT

Short for Electroconvulsive Therapy, a psychiatric treatment in which seizures are electrically induced in anesthetized patients for therapeutic effect.

Electroconvulsive Therapy

A psychiatric treatment where seizures are electrically induced in patients to provide relief from mental disorders.

Repetitive Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of depression and other conditions.

Psychosurgery

A type of brain surgery used to treat psychological disorders and alleviate severe emotional distress, typically by severing connections in the brain's prefrontal cortex.