Which of the Following Courses of Action Is an Auditor

question 29

Multiple Choice

Which of the following courses of action is an auditor most likely to follow in designing a sampling plan for cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A)Increase the sample size to reduce the effect of the unusually large disbursements.
• B)Continue to draw new samples until all the unusually large disbursements are included in the sample.
• C)Set the tolerable deviation rate at a lower level than originally planned.
• D)Stratify the cash disbursements population so that all of the unusually large disbursements are selected.

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Definitions:

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P-value

A statistical measure that helps researchers determine the significance of their results, indicating the likelihood of observing the results given that the null hypothesis is true.

Natural Sampling Variation

The variability observed in sample statistics that occurs naturally because every sample differs due to the random selection of observations.

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Individuals who utilize mobile phones for communication, internet access, applications, and other functions.