Sampling Risk (Sampling Error) Is an Inherent Part of Sampling

question 67

Multiple Choice

Sampling risk (sampling error) is an inherent part of sampling which results from:

• A) weaknesses in client's internal control system.
• B) inappropriate audit procedures.
• C) testing less than the entire population.
• D) failure to recognise exceptions.

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Definitions:

Increasing-cost Industry

An industry in which the costs of production increase as the industry expands, often due to limitations in resources or factors of production.

Long-run Supply Curve

A graphical representation showing the relationship between price and quantity supplied over a longer period, when all inputs can be varied.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes by an infinite amount in response to any price change, depicted as a horizontal line on a graph.