Audit Sampling Is Defined as _______

question 140

Multiple Choice

Audit sampling is defined as _______.

• A)allowing engagement team members to rotate across different types of audits
• B)the probability that the auditor will receive full compensation for all services rendered
• C)The selection and evaluation of less than 100 percent of the population such that the auditor expects the items selected (the sample) to be representative of the population, and thus, likely to provide a reasonable basis for conclusions about the population
• D)The selection and evaluation of 100 percent of the population such that the auditor expects the items selected (the sample) to be representative of the population, and thus, likely to provide a reasonable basis for conclusions about the population

---

Definitions:

Spot-Futures Parity

A theoretical pricing model that suggests the relationship between the spot price of an asset and its corresponding futures price, based on the cost of carry.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Stated

Pertains to information, policies, or conditions that are formally expressed or declared by an authoritative source or document.

Long Hedger

An investor or trader who enters into contracts to purchase a commodity or asset at a future date to protect against price increases.