The Auditor Using Nonstatistical Attributes Sampling,but Who Nevertheless Has Chosen

question 85

Multiple Choice

The auditor using nonstatistical attributes sampling,but who nevertheless has chosen the sample in conformity with random selection procedures:

• A)Need not consider the risk of assessing control risk too low.
• B)Has committed a nonsampling error.
• C)Will have to use discovery sampling techniques to evaluate the results.
• D)Should compare the deviation rate of the sample to the tolerable rate.

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Definitions:

Countertrade

A form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency.

Dumping

Selling a product for a price less than the cost of production to capture market share and force competitors out of the market.

Transfer Pricing

The setting of prices for transactions between affiliated companies within the same multinational corporate structure, affecting financial and tax reporting.

Global Brand Strategy

The approach to creating and maintaining a consistent brand identity and message across different countries and cultures, while accommodating local tastes and preferences.