Which of the Following Statements Is True When Selecting a Sample

question 105

Multiple Choice

Which of the following statements is true when selecting a sample of invoices from a population to perform tests of controls?

• A)The audit team should select a few more items than needed to replace any cases in which an invoice is missing or destroyed.
• B)If the audit team wishes to use statistical sampling,either block or haphazard selection is appropriate.
• C)Computerized audit techniques can be used to define the population but not to select sample items.
• D)The audit team's goal in selecting a sample is to increase the likelihood that it is representative of the population.

---

Definitions:

Remarkable Healing

The process of recovering from an injury or illness in an impressively rapid or efficient manner.

Stackelberg Model

A strategic game theory model that describes a market structure in which one firm (the leader) sets its output or price first, and then other firms (followers) make their decisions sequentially.

Reaction Curve

A graphical representation in economics that shows how one player’s optimal strategy choice depends on the strategy choice of another player.

Cournot Model

An economic model used to describe an industry structure in which companies compete on the quantity of output they will produce, assuming that their competitor's decisions are fixed.