When Testing Internal Controls,which of the Following Statements Is Not

question 10

Multiple Choice

When testing internal controls,which of the following statements is not true with respect to the use of nonstatistical sampling?

• A)Nonstatistical sampling is permitted in the audits of both public and nonpublic entities.
• B)Nonstatistical sampling does not require the use of random selection techniques.
• C)When using nonstatistical sampling,auditors are required to quantify the parameters used to determine sample size.
• D)Auditors are required to use professional judgment in evaluating the sample results in a nonstatistical sampling application.

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Definitions:

Experimental Study

A study method that involves manipulating variables to determine cause and effect relationships.

Cure Rates

The percentage of people who are considered completely free of a particular disease after undergoing treatment.

Double-Masked Design

Experimental procedure in which neither the participant nor the experimenter knows whether the participant has received the experimental treatment or a placebo.

Manipulated

Being controlled or influenced in a clever and often unfair or selfish way.