When Determining the Sample Size for the Number of Items

question 80

Multiple Choice

When determining the sample size for the number of items the auditor should count during the physical inventory:

• A)it is easy to quantify the number of items based on a formula developed by the AICPA.
• B)one of the key determinants that must be considered is internal control over the physical count.
• C)one of the key determinants that must be considered is the time involved.
• D)generally accepted auditing standards require that at least 80% of the dollar value of the inventory should be included in the sample.

---

Definitions:

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or groups of people.

Motivation

The combination of forces that drive people to satisfy their needs.

Psychographics

The study of personality, values, opinions, attitudes, interests, and lifestyles of people, used in market research.

Demographics

Statistical data relating to the population and particular groups within it, often used for marketing, policy-making, and social research.