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.

---

Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding all other factors constant.

Input X

Represents a variable or factor in production or another economic model, signifying a specific input or resource used in a process.

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, typically labor.

Labor Market

A marketplace where labor services are bought (by employers) and sold (by workers), determining the allocation of labor resources and wages.