When Making Statistical Inferences,the Auditor Must Remember That

question 82

Multiple Choice

When making statistical inferences,the auditor must remember that

• A)the True population value must always be known.
• B)auditors can state the conclusions drawn from a confidence interval in different ways.
• C)there can be no possibility that the sample is not sufficiently representative of the population.
• D)the knowledge of sampling distributions does not help the auditors to draw statistical conclusions.

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities on the cash flow statement where net income is adjusted for changes in balance sheet accounts to convert it from accrual to cash basis.

Statement of Cash Flows

A document illustrating the impact of changes in balance sheet positions and profits on cash and cash equivalents.

Operating Activities

Refers to the primary day-to-day activities of a business related to its production, sale, and delivery of goods and services, impacting the cash flow from operations.

Indirect Method

A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.