A Test of Balance Procedure Is Being Performed on the Spare

question 39

Multiple Choice

A test of balance procedure is being performed on the spare parts inventory listing.The listing consists of 10 items that equal or exceed performance materiality and 55 items that are less than materiality.What would be an appropriate sampling approach in this case?

• A)Select a randomly sample from all 65 items contained in the inventory list.
• B)Select a small sample from 10 items over materiality and a larger sample from the remaining 55 items.
• C)Test all 10 items at or above materiality,then select a random sample from the remaining 55 items.
• D)Test all 10 items at or above materiality only,as the remaining items are each immaterial.

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Definitions:

Brand Equity

The value derived from a brand's name and reputation, which can influence consumers' buying decisions and loyalty.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in a business or project and can be affected by its outcomes.

Nonprofit Organizations

Organizations that operate for the promotion of a particular social cause or point of view, rather than for profit. They reinvest any surplus to further their mission.

Limited Funds

A condition where resources, particularly financial, are restricted or scarce.