Which of the Following Statements Is Correct Concerning Statistical Sampling

question 261

Multiple Choice

Which of the following statements is correct concerning statistical sampling in tests of controls?

• A) As the population size increases, the sample size should increase proportionately.
• B) Deviations from specific control activities at a given rate ordinarily result in misstatements at a lower rate.
• C) There is an inverse relationship between the expected population deviation rate and the sample size.
• D) In determining tolerable rate, an auditor considers detection risk and the sample size.

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Definitions:

Method of Induction

A logical process in which multiple premises, gathered through observations, are combined to obtain a general conclusion.

Restrictive Techniques

Methods or strategies used to limit certain behaviors, activities, or engagement in specific contexts.

Authoritative

A child-rearing style in which parents are restrictive and demanding yet communicative and warm.

Permissive-indulgent

A parenting style characterized by high responsiveness and low demands, where parents are highly involved with their children but place few rules and demands.