Which of the Following Is an Advantage of Statistical Sampling

question 21

Multiple Choice

Which of the following is an advantage of statistical sampling?

• A)It permits a less rigid approach to unique audit problems.
• B)It uses an evaluation method that allows evaluation of the sample on factors other than the sample evidence.
• C)It permits auditors to use a computer to select a random sample.
• D)It requires auditors to be exact in their judgements on risk and materiality.

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Definitions:

Type A Personality

A personality oriented toward extreme achievement, impatience, and perfectionism.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.

Organizational Profits

The financial gains achieved by a company after subtracting all expenses, taxes, and costs from its total revenue.

Quality Commitment

A pledge or an obligation undertaken by a company to uphold high standards in its products or services.