Sampling Risk Is _______

question 128

Multiple Choice

Sampling risk is _______.

• A)the same thing as audit risk
• B)the risk that the sample chosen by the auditor is not representative of the population of transactions or items within an account balance and, as a consequence, the auditor arrives at an inappropriate conclusion
• C)the risk that the sample chosen by the auditor is representative of the population of transactions or items within an account balance and, as a consequence, the auditor arrives at an inappropriate conclusion
• D)inversely related to inherent risk

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from consuming one more unit of a good or service.

Optimum

The most favorable condition or highest achievable level of efficiency under the given circumstances.

Indifference Curves

Graphical representations in economics that show combinations of goods among which a consumer is indifferent.

Upward-sloping

A term used in economics to describe a curve that represents an increase in one variable as another variable increases, often used in the context of supply curves.