An Advantage of Statistical Sampling _______

question 131

Multiple Choice

An advantage of statistical sampling _______.

• A)is that it allows an auditor to measure control risk, that is, the risk that the sample chosen by the auditor is not representative
• B)is that it allows an auditor to measure sampling risk, that is, the risk that the sample chosen by the auditor is not representative
• C)is that it allows an auditor to measure inherent risk, that is, the risk that the sample chosen by the auditor is not representative
• D)is that it is cheaper to perform, resulting in lower audit fees for the client

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Definitions:

Mail Fraud Statute

refers to a law that provides federal jurisdiction for cases involving fraudulent activities that utilize the postal system as a means to commit the fraud.

Corporate Liability

The legal obligation of a corporation to pay for damages, fines, or penalties arising from its actions or those of its employees.

Sixth Amendment

An amendment to the U.S. Constitution that guarantees rights to a fair and speedy trial, the right to a lawyer, and the right to an impartial jury.

Speedy Trial

A legal right guaranteeing individuals accused of crimes to be tried promptly, aimed at preventing undue and lengthy pretrial incarceration.