Auditors Who Prefer Statistical to Non-Statistical Sampling Believe That the Principal

question 62

Multiple Choice

Auditors who prefer statistical to non-statistical sampling believe that the principal advantage of statistical sampling flows from its ability to:

• A) provide a mathematical measurement of uncertainty.
• B) define the precision required to provide audit satisfaction.
• C) promote a more legally defensible procedural approach.
• D) establish conclusive audit evidence with decreased audit effort.

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Definitions:

Extended Family

A large group of relatives, usually including at least three generations living either in one household or in close proximity.

Socioeconomic Class

A categorization of people based on their economic status, often determined by income, wealth, education, and occupation, which influences their social opportunities and lifestyle.

Conflict Theory

A sociological perspective that focuses on the inherent divisions of societies based on social inequalities and the way these social divisions give rise to different interests and conflicts.

Nuclear Family

A heterosexual couple with one or more children living in a single household.