Non-Statistical Sampling May Be Better to Use Than Statistical Sampling

question 1

Multiple Choice

Non-statistical sampling may be better to use than statistical sampling when ________.

• A)the auditor has insufficient knowledge about the population to take a statistical sample
• B)the inherent risk of error in the population is low
• C)the population is known to be diverse,with a high inherent risk of error
• D)auditors are not technically proficient in sampling

---

Definitions:

Dealer Market

A financial market mechanism wherein buy and sell transactions are made through a dealer, or market maker, rather than through a centralized exchange.

Auction Market

A marketplace where buyers and sellers enter competitive bids simultaneously, with the price determined through the interaction of these bids.

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

NYSE

The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world, where public companies' stocks are bought, sold, and traded.