Non-Statistical Sampling May Be Better to Use Than Statistical Sampling

question 22

Multiple Choice

Non-statistical sampling may be better to use than statistical sampling when:

• A)The auditor has insufficient knowledge about the population to take a statistical sample.
• B)The inherent risk of error in the population is low.
• C)The population is known to be diverse, with a high inherent risk of error.
• D)Auditors are not technically proficient in sampling.

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Definitions:

Time Period Assumption

An accounting principle that allows the business operations to be divided into specific time periods for reporting purposes.

Revenue Recognition Principle

An accounting principle that dictates under what conditions revenue is recognized and determines when revenue is earned and recorded.

Expense Recognition Principle

An accounting principle that dictates the timing of reporting an expense, aligning it with the revenue it generates or when the expense is incurred, to reflect true financial performance.

National Parks Calendars

Specially designed calendars featuring photographs or illustrations of national parks and their landscapes.