The Auditor Is Concerned with the Audited Value Rather Than

question 56

Multiple Choice

The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

• A)difference estimation.
• B)mean-per-unit estimation.
• C)ratio estimation.
• D)monetary-unit sampling.

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Definitions:

Confidence Interval

A confidence interval is a range of values derived from sample data that is likely to cover the true value of an unknown population parameter.

Mean

The average of a set of numbers, calculated by adding all the numbers together and dividing by the count of those numbers.

Sampling Error

Differences between statistics calculated from a sample and statistics pertaining to the population from which the sample is drawn due to random, chance factors.

Confidence Interval

A sequence of values, from sample statistic studies, expected to encase the value of a population characteristic not yet revealed.