Which of the Following Statements Regarding Sampling Risk Is FALSE

question 28

Multiple Choice

Which of the following statements regarding sampling risk is FALSE?

• A)To reduce sampling risk, the investigator can increase the sample size.
• B)Sampling risk can only be slightly reduced by careful planning of the sampling procedure.
• C)To reduce sampling risk, the investigator can use a random number table.
• D)In fraud examination, sampling risk can be significant.

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Definitions:

Material Alteration

A substantial change to a document or agreement that affects its essence or legal effectiveness.

Genuine Signatures

Authentic and original signatures that verify the identity of signatories and their intent.

Unauthorized Signatures

Signatures made without the express permission or authority of the person purported to sign, potentially leading to legal complications in contract enforcement.

Bank Statement

A monthly or periodic document summarising the financial transactions and balance in a person's bank account.