An Informal Non-Statistical Sampling Plan

question 18

Multiple Choice

An informal non-statistical sampling plan

• A)uses a structured approach to determine the sample size and evaluate the sample results.
• B)determines sample size and results on a quantitative basis.
• C)results in qualitative conclusions about the population.
• D)reduces the likelihood that the auditor will fail to recognise an unacceptable level of sampling risk.

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Definitions:

Tokyo Interbank Rate

A benchmark interest rate at which banks lend to each other in the Tokyo interbank market.

Euribor

The interest rate at which banks lend to each other in euros, serving as an important benchmark for various financial instruments in the Eurozone.

FIFO

The first-in, first-out accounting method of inventory valuation.

LIFO

The last-in, first-out accounting method of valuing inventories.