When Statistical Sampling Methods Are Used by the Client in Determining

question 12

Multiple Choice

When statistical sampling methods are used by the client in determining inventories, professional standards require that the auditor ascertain the following except that the:

• A) sampling plan has statistical validity.
• B) sampling plan has been properly applied.
• C) results in terms of reliability are reasonable.
• D) appropriate tests of transactions have been applied.
• E) results in terms of precision are reasonable.

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Definitions:

Round-Trip

Refers to a journey or transport route that goes from one place to another and then returns to the starting point.

Work Centers

Specific areas or stations in a manufacturing facility where a particular process or set of tasks is performed.

Office Spaces

Physical locations or areas where administrative work is performed, typically within a building dedicated to hosting various business activities.