Which of the Following Best Describes the Distinguishing Feature of Statistical

question 54

Multiple Choice

Which of the following best describes the distinguishing feature of statistical sampling?

• A)It requires the examination of a smaller number of supporting documents.
• B)It permits the auditor to use the most efficient sample size and to quantify the sampling risk to reach a statistical conclusion about the population.
• C)It reduces the problems associated with the auditor's judgment concerning materiality.
• D)It is evaluated in terms of two parameters: statistical mean and random selection.

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Definitions:

Useful Life

The estimated duration of time over which an asset is expected to be functional and generate revenue for its owner.

Annual Expected Income

An estimate of the amount of money that is anticipated to be earned over a one-year period from various sources of income.

Salvage Value

An asset's forecasted value after its period of usability has concluded.

Cost

The amount of money or resources expended to obtain an asset, service, or achieve a specific outcome.