Auditors Who Prefer Statistical to Nonstatistical Sampling Believe That the Principal

question 53

Multiple Choice

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its ability to

• A) quantify sampling risk.
• B) promote a more legally defensible procedural approach.
• C) define the precision required to provide audit satisfaction.
• D) establish conclusive audit evidence with decreased audit effort.

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Definitions:

Right Locations

Optimal or strategically chosen places for conducting business, ensuring accessibility, visibility, and profitability, tailored to the target market's preferences.

Supply Chain Management

The management of products, information, and monetary assets as they progress from suppliers to manufacturers, then wholesalers, retailers, and ultimately consumers.

Gross Margin

A financial metric that represents the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the profitability of a company's core activities.

Subcontractors

Independent entities hired by a primary contractor to perform a specific task as part of a larger project.