Why Do Auditors Generally Use a Sampling Approach to Evidence

question 33

Multiple Choice

Why do auditors generally use a sampling approach to evidence gathering?

• A)Auditors are experts and do not need to look at much to know whether the financial statements are correct or not.
• B)Auditors must balance the cost of the audit with the need for precision.
• C)Auditors must limit their exposure to their auditee to maintain independence.
• D)The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

---

Definitions:

Standard Deviation

A statistic that measures the dispersion or variation of a set of values relative to their mean.

Test Statistic

A test statistic is a value calculated from sample data during hypothesis testing, used to decide whether to reject the null hypothesis.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it denotes the threshold of significance.

Significance Level

The probability threshold below which a null hypothesis is rejected in hypothesis testing, often denoted by alpha (α).