In Attribute Sampling If the Selected Item Cannot Be Located

question 104

True/False

In attribute sampling if the selected item cannot be located, the auditor should assume that the control procedure was not followed and assess that item as a failure.

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Definitions:

Total Surplus

The total net gain to society from a market transaction, which is the combination of consumer surplus and producer surplus.

Consumer Surplus

The gap between the aggregate amount buyers are willing and able to spend for a good or service, versus what they actually spend.

Property Rights

The legally guaranteed rights to own, use, and dispose of assets, including physical and intellectual property.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits received by all parties involved.