Which of the Following Statements Is Correct When Dealing with Sampling

question 7

Multiple Choice

Which of the following statements is correct when dealing with sampling for exception rates?

• A) The term exception refers to both deviations from the client's control procedures and amounts that are not monetarily correct.
• B) When used with sampling, the term deviation is synonymous with the term exception.
• C) The actual population exception rate is the same as the sample exception rate.
• D) In using audit sampling for exception rates, the auditor is most concerned with the confidence interval.

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Definitions:

Discrimination Coefficients

Statistical measures used to differentiate or distinguish between different categories or groups in analyses.

Labor Market

A term that refers to the supply of labor and the demand for labor by employers, where wages are determined.

Taste-For-Discrimination Model

An economic model that explains how personal bias and preferences can lead to differences in wages and employment levels for certain groups.

African-American-White

Refers to the societal, demographic, or statistical distinctions and analyses contrasting African American individuals or communities with White individuals or communities.