The Most Commonly Used Method of Statistical Sampling for Tests

question 97

Multiple Choice

The most commonly used method of statistical sampling for tests of details of balances is:

• A) discovery sampling.
• B) monetary-unit sampling.
• C) variables sampling.
• D) attributes sampling.

---

Definitions:

Escalated Commitment

A pattern of behavior in which an individual or group continues to rationalize their decisions, invest additional resources, and follow a failing course of action.

Risky Shift

The tendency for groups to make riskier decisions than the average risk initially advocated by their individual members.

Faulty Hindsight

The misinterpretation or incorrect analysis of past events, often seeing them as more predictable than they actually were.

Previous Sunk Costs

Refers to resources that have already been spent and cannot be recovered.