When the Auditor Intends to Evaluate a Sample Statistically, the Only

question 103

Multiple Choice

When the auditor intends to evaluate a sample statistically, the only acceptable selection method is:

• A) probabilistic selection.
• B) block sample selection.
• C) judgemental selection.
• D) haphazard selection.

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Definitions:

Standard Cost Card

A document that lists the standard costs associated with producing a product, including materials, labor, and overhead rates.

Direct Labor Hour

Direct labor hour refers to the time spent by workers directly involved in the production of goods or services.

Overhead Applied

A portion of overhead costs assigned to a particular cost object based on a predetermined rate.

Direct Labor Efficiency Variance

The difference between the budgeted amount of direct labor required to produce an output and the actual direct labor used.