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:

Recovery Phase

A period in the economic cycle where economic activity picks up and grows, following a recession or slowdown.

Business Cycle

The fluctuation of economic activity over time, including periods of expansion, peak, recession, and recovery.

Severe Recession

An intense period of economic decline, marked by significant drops in economic activity, employment, and consumer spending across multiple sectors.

WWII

World War II, a global conflict that lasted from 1939 to 1945, involved most of the world's nations, and was marked by significant battles across Europe, Asia, and the Pacific.