Which of the Following Is an Advantage of Statistical Sampling

question 36

Multiple Choice

Which of the following is an advantage of statistical sampling?

• A)It permits a less rigid approach to unique audit problems.
• B)It uses an evaluation method that allows evaluation of the sample on factors other than the sample evidence.
• C)It permits auditors to use a computer to select a random sample.
• D)It requires auditors to be exact in their judgments on risk and materiality.

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Definitions:

Mortgage

A legal agreement in which property is used as collateral for a loan, with the property title transferred to the lender until the loan is repaid.

Undated

Not having a specified date, which can pertain to documents, events, or items that lack a temporal reference.

Nonnegotiable

Referring to an instrument, term, or condition that cannot be transferred or altered by agreement between the parties involved.

Maker

The party in a financial instrument, like a check or promissory note, who is responsible for the payment of the amount specified.