To Ensure That All the Population Items Will Be Properly

question 38

Multiple Choice

To ensure that all the population items will be properly subjected to the sample selection process,the auditor should

• A)use a random number generator for sample selection.
• B)use monetary unit sample selection methods.
• C)document the range of document numbers in use by the client.
• D)test the population for completeness.

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Definitions:

Dividend Practices

Refers to corporate policies and strategies regarding the distribution of profits to shareholders in the form of dividends.

Earnings in Dividends

This term is not standard; likely refers to the portion of a company's earnings distributed to shareholders in the form of dividends.

Residual Dividend Policy

A strategy whereby companies pay dividends from the residual or leftover equity only after all project capital needs are met.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total net income.