Which of the Following Would Be an Improper Technique When

question 33

Multiple Choice

Which of the following would be an improper technique when using monetary-unit statistical sampling in an audit of accounts receivable?

• A)Combining negative and positive dollar misstatements in the appraisal of a sample.
• B)Using a sampling technique in which the same account balance could be selected more than once.
• C)Selecting a random starting point and then sampling every nᵗʰ dollar.
• D)Defining the sampling unit in the population as an individual dollar and not as an individual account balance.

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Definitions:

Equilibrium Price

The rate at which the demand for a good or service is equal to the supply, achieving a state of market equilibrium.

Market Imbalances

Situations where the quantity of a good or service supplied does not equal the quantity demanded, leading to surplus or shortage.

Drug Trade

The illegal production, distribution, and sale of drugs that are subject to drug prohibition laws.

Equilibrium Price

The market price at which the supply of an item equals the demand for it, leading to a stable market condition.