Which of the Following Is a Factor That the Auditor

question 84

Multiple Choice

Which of the following is a factor that the auditor should consider when choosing between nonstatistical and statistical sampling?

• A)Whether the audit staff is adequately trained to use statistical sampling.
• B)Whether the population lends itself to a random-based selection method.
• C)Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion.
• D)All of the above.

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Definitions:

Total Surplus

The combined value of consumer and producer surplus that signifies the overall advantage to society through the manufacturing and consumption of products or services.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual market price they pay.