When Selecting a Sample of Items to Perform a Test

question 13

Multiple Choice

When selecting a sample of items to perform a test of controls,all of the following should be true of a representative sample,except

• A) the transactions have been processed by the entity throughout the year.
• B) the transactions should be limited to those processed in a specific geographic area.
• C) the transactions have been processed by different individuals.
• D) the transactions represent both large and small dollar amounts.

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Definitions:

Innovators

Individuals who adopt new ideas or technologies before most others in a society or industry.

Diffusion of Innovation

The method through which an innovative concept, item, or practice disperses across a community or societal structure.

Laggards

In the context of diffusion of innovation, laggards are the last group of people to adopt new technology or ideas, often resistant to change and preferring traditional methods.

Risk Barrier

A hurdle or challenge that must be overcome to achieve a goal, often related to uncertainty or potential losses in business or investment.