The Two Most Important Factors That Determine the Appropriate Sample

question 31

Multiple Choice

The two most important factors that determine the appropriate sample size in audits are

• A)the auditor's expectation of errors and the effectiveness of the client's internal controls.
• B)the auditor's expectation of errors and materiality.
• C)the effectiveness of the client's internal controls and materiality.
• D)materiality and the type of audit procedure to be applied to the population.

Comprehend the rights and processes involved in dissenting from corporate actions and enforcing dissenters' rights.

Understand how to calculate allele frequency in a population.

Comprehend the implications of different genetic variations and mutations on species and individuals.

Appreciate the concept of natural selection and evolutionary mechanisms including mutation, genetic drift, and gene flow.

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Definitions:

Comparative Advantage

The principle that countries or entities should produce goods and services where they have a lower opportunity cost compared to others.

Domestic Opportunity Cost

The cost of forgoing the next best alternative when choosing to produce a good or service domestically.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of a country's resources when choosing to produce a particular good or service.