Which One of the Following Statements Is NOT Correct

question 145

Multiple Choice

Which one of the following statements is NOT correct?

• A) It is acceptable for auditors to use statistical sampling methods.
• B) The primary benefit of statistical sampling methods is the quantification of sampling risk.
• C) An advantage of using statistical sampling is that the cost/benefit ratio is always positive.
• D) It is acceptable for auditors to use non-statistical sampling methods.

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Definitions:

Consignment

A business arrangement where goods are left in the possession of another party to sell, but ownership remains with the sender until the goods are sold.

International Business

Commercial transactions that occur across country borders, including trade, investment, and strategic partnerships.

Coupon

A voucher entitling the holder to a discount for a particular product or service.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professionals.