An Advantage of Statistical Sampling Over Non-Statistical Sampling Is That

question 8

Multiple Choice

An advantage of statistical sampling over non-statistical sampling is that statistical sampling helps an auditor to

• A)Minimize the failure to detect errors and irregularities.
• B)Eliminate the risk of non-sampling errors.
• C)Reduce the level of audit risk and materiality to a relatively low amount.
• D)Make a preliminary estimate of the appropriate sample size.

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Definitions:

Proprietary Fund

A type of fund used in governmental accounting that is used to account for activities similar to those found in the private sector, where the payment of fees by external users for goods or services provided by the fund is the principal source of revenue.

Special Tax Levy

A tax imposed for a specific purpose, often by local or state governments, beyond regular taxing mechanisms.

Environmental Preservation

Actions and policies aimed at protecting the natural environment from degradation and pollution to ensure its health and sustainability for future generations.

Derived Tax Revenue

Income obtained by government authorities through taxation that is influenced or generated from specific business activities or transactions.