Using Statistical Sampling _______

question 137

Multiple Choice

Using statistical sampling _______.

• A)involves training in the use of the statistical technique and the professional judgments involved in planning and setting up the sample, as well as in evaluating sample results
• B)involves training in the use of non-statistical techniques and the professional judgments involved in planning and setting up the sample, as well as in evaluating sample results
• C)typically increases inherent risk
• D)typically decreases inherent risk

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Definitions:

Note

A written agreement acknowledging a debt and promising repayment.

Direct Write-off

A method of accounting for bad debts where uncollectible accounts receivable are written off directly against income at the time they are deemed nonrecoverable.

Allowance Methods

Accounting techniques used to anticipate and account for future loan losses by establishing an allowance for doubtful accounts.

Bad Debt

Money owed to a company that is unlikely to be paid by the debtor, often leading to the creditor writing it off as a loss.