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.

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Definitions:

Personal Assets

Assets owned by an individual, including real estate, bank accounts, investments, and personal property.

Raise Capital

The process by which a company or individual secures money from investors or lenders for business activities or expansion.

TSX

The Toronto Stock Exchange, which is the largest stock exchange in Canada, trading Canadian securities.