If the Size of the Sample to Be Used in a Particular

question 56

Multiple Choice

If the size of the sample to be used in a particular test of controls has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures:

• A)no inferences can be drawn from the sample.
• B)the auditor has committed a nonsampling error.
• C)depending on the size of the sample chosen, the auditor may actually achieve desired precision.
• D)the auditor will have to evaluate the results by reference to the principles of discovery sampling.

---

Definitions:

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entity to the government within a given tax period.

Canadian-Controlled Private Corporation (CCPC)

A Canadian-Controlled Private Corporation (CCPC) is a classification in Canada for a privately held company that is controlled by Canadian residents.

Earnings Before Taxes (EBT)

A measure of a company's profitability that calculates income before the deduction of tax expenses.

Free Cash Flow

The sum of money a business produces once it subtracts the cash spent to sustain its operations and upkeep of its capital assets.