When Errors Are Found in a Sample, Auditors in Practice

question 129

Multiple Choice

When errors are found in a sample, auditors in practice generally assume

• A) that the population errors cannot be determined.
• B) that the population errors are larger than the sample errors.
• C) that the population errors are smaller than the sample errors.
• D) that the actual sample errors are representative of the population errors.

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Definitions:

Omitted Variables

Factors not included in a model that could influence its outcome or the relationship between variables studied.

Reverse Causality

The error committed when the true direction of causality between two variables is reversed, and the independent variable and the dependent variable are incorrectly identified.

Features of Construction

Characteristics or aspects that pertain to the method and process of constructing buildings or infrastructure.

Bar Graph

A chart or graphical representation of data, typically used to compare amounts or values across different categories, using bars of different lengths.