An Auditor Has Determined That the Appropriate Sample Size for a Particular

question 35

Multiple Choice

An auditor has determined that the appropriate sample size for a particular audit procedure is 50.Which of the following methods can the auditor use to select the 50 items?

• A) Select the 50 items with the largest dollar amounts.
• B) Select the 50 items randomly.
• C) Select one week and examine the first 50 items.
• D) Use any combination of the above three methods.

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Definitions:

Null Hypothesis

A statement suggesting no statistical significance or effect, used as a default position that there is no relationship between two measured phenomena.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study based on theoretical grounds.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Larger Population

Refers to a greater number of individuals within a particular group or area being studied.