Which of the Following Would Be an Improper Technique When

question 30

Multiple Choice

Which of the following would be an improper technique when using statistical sampling in an audit of accounts receivable?

• A) Using a sampling technique in which the same account balance could be selected more than once.
• B) Combining negative and positive dollar misstatements in the evaluation of a sample.
• C) Defining the sampling unit in the population as an individual dollar and not as an individual account balance.
• D) Selecting a random starting point and then sampling every Nth dollar.

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Definitions:

Unliquidated Debt

A debt for which the exact monetary value has not been determined, often due to the nature of the claim or disputes over the amount.

Preexisting Duty

A legal concept referring to a duty that a party is already legally obliged to perform, which cannot serve as consideration for a new contract.

Adequate Consideration

A value that is fair and reasonable under the circumstances for both parties involved in a contract, not necessarily equal in monetary terms but sufficient to support the agreement.

Payment In Full

A payment that settles a debt or obligation completely, leaving no remaining balance or outstanding dues.