Which of the Following Statements Is True Regarding Classical Variables

question 94

Multiple Choice

Which of the following statements is true regarding classical variables sampling?

• A)A very small dollar account has the same probability of being selected for examination as a very large dollar account.
• B)The determination of sample size requires to auditors to consider a smaller number of factors than are considered under MUS.
• C)Classical variables sampling should be used when the auditor has greater concerns for overstatement (rather than understatement)errors.
• D)The sampling unit is defined as each individual dollar in the account under examination.

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Definitions:

Test Statistic

A quantity derived from sample data that is used in a hypothesis test to make a decision about the null hypothesis.

Chi-Squared Table

A table that shows the critical values of the chi-square distribution, used to determine the significance of chi-square statistics.

Null Hypothesis

The assumption in hypothesis testing that posits no significant difference exists between specified populations.

Contingency Table

A table often used in statistics to display the frequency distribution of variables.