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:

Psychological Contract

An unwritten agreement that reflects mutual expectations and obligations between an employee and employer beyond the formal contract of employment.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors required to function within a society or specific group.

Excess Burden

The cost to society created by market inefficiency, often associated with government interventions like taxes or subsidies, which distort market allocations of resources.

Tax Imposed

A financial charge or other levy placed upon an individual or legal entity by a state or the functional equivalent of a state.