Statistical Sampling Allows the Auditor to Limit Sampling Risk to an Acceptable

question 105

Multiple Choice

Statistical sampling allows the auditor to limit sampling risk to an acceptable level. Following are major classifications of sample selection are all of the following EXCEPT:

• A) Judgment samples
• B) Probability samples
• C) Random sample
• D) Both A & B

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Record Keeping

The practice of maintaining and preserving documents, files, and records related to financial transactions for future reference.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including payment deadlines and any possible discounts for early payment.

General Journal Entries

Entries made in the general journal to record financial transactions in the accounting system.