A Logical Sampling Unit Is Defined as _______

question 111

Multiple Choice

A Logical Sampling Unit is defined as _______.

• A)the item snagged by the sampling plan for audit, such as an individual customer, or individual sales invoice.Tests of controls are performed on the logical sampling unit
• B)the item snagged by the sampling plan for audit, such as an individual customer, or individual sales invoice.Auditing procedures are performed on the logical sampling unit
• C)a department within the client's firm, which will be audited by the external auditor
• D)the item snagged by the sampling plan for audit, such as an aggregated group of customers, or sales invoices.Auditing procedures are performed on the logical sampling unit

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Definitions:

Preferential Tax Rates

Lower tax rates applied to specific types of income, such as capital gains or qualified dividends, which are taxed at a different rate than ordinary income.

Capital Gains

The profit from the sale of property or an investment when the selling price exceeds the original purchase price.

Capital Losses

The loss incurred when a capital asset (like stocks or real estate) is sold for less than its purchase price.

Capital Gain Distributions

The payments made to mutual fund shareholders from the fund's sale of stocks or assets, subject to capital gains taxes.