Which of the Following Is an Audit Sampling Approach

question 54

Multiple Choice

Which of the following is an audit sampling approach?

• A) The auditor identifies all items greater than $10 000 from the cash receipts journals and tests 50 per cent of these items.
• B) The auditor randomly selects 10 per cent of the items from a cash receipts journal, for vouching back to supporting documents.
• C) The auditor identifies all cash receipts from a particular customer and tests 50 per cent of these items.
• D) All of the above.

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Definitions:

Marginal Tax Rate

The percentage at which the last dollar of income is taxed, indicating how much tax will be paid on an additional dollar of income.

Total Income

The sum of all earnings or revenue generated by an individual or organization before any deductions.

Marginal Tax Rate

Marginal Tax Rate is the rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Total Income

The sum of all earnings and other forms of income received by an individual or entity over a period of time.