Which of the Following Is a Correct Statement Regarding Probabilistic

question 45

Multiple Choice

Which of the following is a correct statement regarding probabilistic versus nonprobabilistic sample selection?

• A) Auditors may make nonstatistical evaluations when using probabilistic sample selection.
• B) The AICPA recommends probabilistic sample selection.
• C) Nonstatistical sampling can't provide results that are as effective as a statistical sample.
• D) There is only one type of nonprobabilistic sample selection method.

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Definitions:

Incorporate

To incorporate is to legally form a corporation by filing required documents with a governmental entity, granting the company distinct legal status from its owners.

Unlimited Liability

The liability of the sole proprietor or the partners for all debts incurred by the business to the extent of their personal resources.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Incorporated

A legal process whereby a business entity is formed as a distinct legal entity, separate from its owners, with its own rights and liabilities.