When Planning the Audit Sample

question 99

Multiple Choice

When planning the audit sample,

• A) one objective of the tests of controls is to test the effectiveness of the controls.
• B) audit sampling applies to analytical procedures.
• C) audit sampling generally applies to automated controls.
• D) the auditor must generalize from the sample to the population.

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Definitions:

Dropping Product

The decision to stop manufacturing, selling, or supporting a product, often due to low sales or profitability.

Eliminating Product

The process of discontinuing the production and sale of a product, typically due to poor sales, profitability, or strategic realignment.

Financial Advantage

The benefit gained from making a financially prudent decision that leads to wealth accumulation, cost savings, or any other monetary gain.

Dropping Product

The decision to discontinue the production and sale of a product line or item, typically due to it not meeting financial or strategic goals.