Random Selection Is Used in Audit Sampling So That

question 39

Multiple Choice

Random selection is used in audit sampling so that:

• A) larger items are more likely to be selected.
• B) each item has a known and equal chance of being selected.
• C) a representative sample is guaranteed.
• D) b and c

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Definitions:

Accounts Payable

Amounts a company owes to suppliers for goods or services that have been received but not yet paid for.

Purchase of Land

The acquisition of land as a fixed asset, recorded at its purchase cost plus any related expenses necessary for its intended use.

Sale of Land

The act of transferring ownership of a parcel of land from one party to another, typically involving a financial transaction.

Land Account

An account in the ledger that records the costs and values related to ownership of land.