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:

Relationship Management

The strategies and processes of maintaining and improving relationships with customers, clients, or partners to support strategic goals and objectives.

Social Awareness

The ability to understand and respond to the needs and emotions of others, facilitating empathy and social interactions.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which is critical for personal development.

Jung's Model

A psychological framework developed by Carl Jung, which categorizes human personalities into archetypes based on their preferences in perception and decision-making.