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:

Encopresis

A condition characterized by the repeated passing of feces into inappropriate places by a child who is typically over the age of four.

Involuntary Defecating

Refers to the loss of bowel control, resulting in unexpected passing of feces, often related to health conditions or neurological disorders.

Enuresis

A condition characterized by involuntary urination, especially by children at night, also known as bedwetting.

Phenylketonuria (PKU)

A genetic disorder where the body is unable to break down the amino acid phenylalanine, leading to its accumulation and potential brain damage.