Sampling Methods and Confidence Intervals Are Routinely Used for Financial

question 11

Multiple Choice

Sampling methods and confidence intervals are routinely used for financial audits of large companies.Which of the following is an advantage of doing it this way, versus having a complete audit of all records?

• A)It is much cheaper.
• B)A sample can be done more carefully than a complete audit.
• C)A well-designed sampling audit may yield a more accurate estimate than a less carefully carried out complete audit or census.
• D)All of the above.

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Definitions:

Intestacy Laws

State statutes that specify how property will be distributed when a person dies intestate (without a valid will).

Surviving Spouse

The spouse who remains alive after the other spouse passes away, often referenced in the context of inheritance laws or benefits.

Decedent's Estate

Assets and liabilities left by an individual who has passed away.

Probate

The process of proving and validating a will, and settling all matters pertaining to an estate.