When Does the Auditor Use Simple Random Sampling

question 62

Multiple Choice

When does the auditor use simple random sampling?

• A) when the auditor has a particular judgmental criteria that is used to select the sample
• B) where the auditor wants numbers in sequence and would like to select the sample rapidly
• C) for testing of cutoff after the year end with respect to accounts payable
• D) for populations where each item is considered to have the same characteristics for audit purposes

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Definitions:

Monthly Interest Rate

The interest rate applied to a loan or debt for a one-month period.