One of the Ways to Reduce Sampling Risk Is To

question 10

Multiple Choice

One of the ways to reduce sampling risk is to:

• A) provide proper supervision and instruction of the audit team.
• B) carefully design the audit procedures to be used.
• C) use variables sampling rather than attributes sampling.
• D) use an appropriate method of selecting sample items from the population.

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Definitions:

Variance

A statistical measurement of the dispersion or spread of a set of data points, indicating how much the individual data points differ from the mean.

Normally Distributed

Relates to a distribution that follows a normal distribution, with data symmetrically distributed around the mean.

Gasoline Prices

The cost per unit volume of gasoline, which can fluctuate based on several factors including crude oil prices, demand, taxes, and regulations.

Continuous Probability Distribution

A function that describes the probability of a continuous random variable falling within a certain range of values.