When Does the Auditor Use Simple Random Sampling

question 8

Multiple Choice

When does the auditor use simple random sampling?

• A)when the auditor has particular judgmental criteria that are used to select the sample
• B)where the auditor wants numbers in sequence and would like to select the sample rapidly
• C)for testing of cutoff after the year end with respect to accounts payable
• D)for populations where each item is considered to have the same characteristics for audit purposes

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Definitions:

Disruptive Conditions

Circumstances that significantly alter the normal course of operations, potentially causing upheaval.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Constructive Purpose

The intention behind actions or policies that aim to bring about positive change, improvement, or resolution of problems.

Virtual Teams

Groups of individuals who work together from different geographic locations, connected by technology such as email, video conferencing, and collaboration platforms.