One of the Purposes of Using Statistical Sampling Is to Quantify

question 31

Multiple Choice

One of the purposes of using statistical sampling is to quantify sampling risk.For which of the following audit tests would sampling risk be zero?

• A)The auditor used monetary unit sampling to select a sample of payroll payments.
• B)The auditor used attribute sampling to select a sample of shipping documents.
• C)The auditor sent empty (zero balance)external confirmations to suppliers with large dollar balances.
• D)The auditor sent external confirmations to all financial institutions used by the client.

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Definitions:

Growth Hormone

A hormone secreted by the anterior pituitary gland that stimulates growth, cell reproduction, and cell regeneration.

Gigantism

A condition characterized by excessive growth and height significantly above average, due to an overproduction of growth hormone in childhood.

Antidiuretic Hormone

A hormone released by the pituitary gland that regulates water balance by reducing urine production and increasing water reabsorption by the kidneys.

Posterior Pituitary

The rear portion of the pituitary gland, responsible for the storage and release of antidiuretic hormone (ADH) and oxytocin, which play roles in water balance and childbirth respectively.