If an Auditor, Planning to Use Statistical Sampling, Is Concerned

question 74

Multiple Choice

If an auditor, planning to use statistical sampling, is concerned with the dollar value of mathematical errors in sales invoices, the auditor would most likely NOT utilise:

• A) sampling for attributes.
• B) sampling for variables.
• C) stratified random sampling.
• D) random sampling.

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Definitions:

After-Tax Lease Payments

The lease payments adjusted for tax effects, reflecting the actual cost of leasing after considering tax savings.

NAL

Net Advantage to Leasing, a financial calculation to determine whether leasing an asset is more cost-effective than purchasing it.

International Accounting Standards

A set of accounting guidelines that dictate how financial transactions and statements should be recorded and reported across different countries.

IAS 17

An international accounting standard that provides guidance on the accounting and financial reporting of leases.