Which of the Following Best Illustrates the Concept of Sampling

question 39

Multiple Choice

Which of the following best illustrates the concept of sampling risk?

• A)A randomly chosen sample may not be representative of the population as a whole on the characteristic of interest.
• B)An auditor may select audit procedures that are not appropriate to achieve the specific objective.
• C)An auditor may fail to recognize deviations in the documents examined for the chosen sample.
• D)The documents related to the chosen sample may not be available for inspection.

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Definitions:

Unauthorized Cards

Payment cards such as credit or debit cards used without the consent or authorization of the cardholder, often resulting in fraudulent transactions.

Counterfeiting

The act of making an imitation of an object, typically money or branded goods, with the intent to deceive.

Redlining

A discriminatory practice by which services (like banking and insurance) are withheld from potential customers in certain neighborhoods based on racial or ethnic composition.

Gramm-Leach-Bliley Financial Modernization Act

A U.S. federal law enacted in 1999 to control the ways that financial institutions deal with the private information of individuals.