An Auditor Is Preparing to Sample an Entity's Customer Receivables

question 50

Multiple Choice

An auditor is preparing to sample an entity's customer receivables for overstatement. A statistical sampling method that automatically provides stratification when using systematic selection is:

• A)attribute sampling.
• B)ratio-estimation sampling.
• C)monetary-unit sampling.
• D)mean-per-unit sampling.

---

Definitions:

Traditional Bargaining

The conventional process of negotiation between unions and employers focused primarily on wages, hours, and other basic working conditions.

Direct Dealing

An approach where employers and employees negotiate employment terms without the mediation of a labor union, emphasizing direct interaction and agreement.

Arbitrator

A neutral third-party individual who is chosen to resolve a dispute between parties outside of court, often used in labor disputes to decide on fair terms of agreements or contracts.

Binding Arbitration

A dispute resolution process where an impartial third party makes a decision that is legally binding on both sides involved in the dispute.