According to AU-C 530, Audit Sampling, Statistical Sampling _______

question 116

Multiple Choice

According to AU-C 530, Audit Sampling, statistical sampling _______.

• A)should only be conducted for public companies
• B)is an approach to sampling that involves a random selection of sample items and the use of an appropriate statistical technique to determine sample size and evaluate sample results, including measurement of sampling risk
• C)is an approach to sampling that involves a random selection of sample items and the use of an appropriate non-statistical technique to determine sample size and evaluate sample results, including measurement of sampling risk
• D)should only be conducted for private companies

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Definitions:

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption that is tested against.

Error Hypothesis

A statement positing the existence of a difference or effect, used in the context of hypothesis testing to denote a hypothesis that is tested for being in error relative to the null.

Larger Population

Refers to a bigger group or category of individuals from which samples can be drawn for statistical analysis.

Smaller Sample

A subset of a population that contains fewer observations, which may affect the reliability of statistical conclusions.