When Statistical Sampling Is Used,the Sample Selected Must Be a Probabilistic

question 37

Multiple Choice

When statistical sampling is used,the sample selected must be a probabilistic one.In addition,the auditor should

• A)use the haphazard selection method to make sure that the sample is properly selected.
• B)use appropriate statistical evaluation methods of nonsampling risk computations.
• C)request the client to review the sample and approve all items that are selected.
• D)use appropriate statistical evaluation methods of sampling risk computations.

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Definitions:

Repairs

Expenditures to maintain the operational status of assets, rather than to improve or extend their life.

Office Equipment

Tangible items such as computers, desks, and chairs used to facilitate operations in a corporate office setting.

Land

A natural resource not man-made, referring to the earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.

Purchase Price

The amount of money that is paid to acquire a good, service, or asset.