Using Nonstatistical Sampling, Which of the Following Courses of Action

question 4

Multiple Choice

Using nonstatistical sampling, which of the following courses of action would an auditor most likely follow in planning a sample of cash disbursements if the auditor is aware of several unusually large cash disbursements?

• A)Set the tolerable deviation rate at a lower level than originally planned.
• B)Identify the large and unusual disbursements as individually significant and test 100 percent.
• C)Increase the sample size to reduce the effect of the unusually large disbursements.
• D)Continue to draw new samples until all the unusually large disbursements appear in the sample.

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Definitions:

Loss

The experience of having something valuable taken away or its absence, often leading to feelings of sorrow or grief.

Mistrust

Lack of trust or confidence in someone or something, often stemming from past experiences or perceived intentions.

Hysterical Personality

An outdated term often associated with Histrionic Personality Disorder, characterized by a pattern of excessive emotionality and attention-seeking behavior.

Histrionic Personality Disorder

A mental health condition characterized by a pattern of excessive attention-seeking behaviors, including inappropriate seduction and an excessive desire for approval.