Which of the Following Statements Is Correct Concerning Statistical Sampling

question 87

Multiple Choice

Which of the following statements is correct concerning statistical sampling in tests of controls?

• A)Deviations from control procedures at a given rate usually result in misstatements at a higher rate.
• B)As the population size doubles,the sample size should also double.
• C)The qualitative aspects of deviations are not considered by the auditor.
• D)There is an inverse relationship between the sample size and the tolerable rate of deviation.

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Definitions:

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.

Reacquired

Reacquired refers to the act of a company buying back its own shares from the marketplace, usually to increase shareholder value or to take advantage of perceived undervaluation.

Sarbanes-Oxley Act

A U.S. law passed in 2002 to protect investors by making corporate disclosures more reliable and accurate, aiming to prevent corporate fraud.

Corporate Shares

Financial instruments representing ownership in a company, typically entitling the shareholder to a portion of the profits.