Non- Probabilistic Sample Selection Methods Are NOT Based on Strict

question 65

Multiple Choice

Non- probabilistic sample selection methods are NOT based on strict mathematical probabilities; therefore:

• A) they are forbidden by the Statements of Auditing Standards.
• B) they are not as good as statistical sampling.
• C) they are discouraged by the Corporations Act.
• D) the representativeness of the sample may be difficult to determine.

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Definitions:

Mutually Beneficial Exchange

An economic interaction where all parties involved gain or perceive a gain from the transaction.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others, leading to more efficient international trade.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.