When Using Statistical Sampling, the Auditor Would Most Likely Require

question 125

Multiple Choice

When using statistical sampling, the auditor would most likely require a smaller sample if the

• A) population increases.
• B) desired reliability decreases.
• C) desired precision interval narrows.
• D) expected exception rate increases.

---

Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a particular input, holding all other inputs constant.

Explicit Costs

Costs that involve direct monetary payment by a firm for the resources needed in production, such as wages and materials.

Implicit Costs

The opportunity costs of utilizing resources owned by the company for its operations instead of other purposes.