Which of the Following Statements Is Correct When Dealing with Sampling

question 7

Multiple Choice

Which of the following statements is correct when dealing with sampling for exception rates?

• A) The term exception refers to both deviations from the client's control procedures and amounts that are not monetarily correct.
• B) When used with sampling, the term deviation is synonymous with the term exception.
• C) The actual population exception rate is the same as the sample exception rate.
• D) In using audit sampling for exception rates, the auditor is most concerned with the confidence interval.

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Definitions:

Successful Business

A company or enterprise that achieves its goals, generates profit, and sustains positive growth over time.

Earned Wealth

Financial resources acquired through work, investment, or entrepreneurial ventures as opposed to inheritance.

Discriminatory Practices

Unfair treatments or prejudices towards individuals or groups based on race, gender, age, or other characteristics.

Wealth Distribution

This refers to the manner in which wealth is shared or distributed among the individuals in a society, often highlighting the disparities between different economic classes.