There Are Many Situations in Auditing Where It Is Advantageous

question 36

Multiple Choice

There are many situations in auditing where it is advantageous to select samples that emphasise population items that have larger recorded amounts.Which one of the following would NOT be a way to obtain such a sample?

• A) Take a sample where the probability of selecting any individual population items is proportional to its recorded amount
• B) Use stratified sampling
• C) Use probability-proportional-to-size sampling
• D) Use block sample selection

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Definitions:

Demographic Trends

Patterns and changes in the composition of a population over time, such as age, race, and gender distributions.

Political System

The set of formal legal institutions that constitute a government or a state. This includes laws, policies, and procedures that define the way a state is governed.

Hispanics

People from, or descendants of people from, Spanish-speaking countries, especially those living in the United States.

Latinos

A term used to describe people of Latin American origin or descent, often living in the United States.