Which of the Following Statements Is Correct Regarding Nonstatistical Sampling

question 71

Multiple Choice

Which of the following statements is correct regarding nonstatistical sampling?

• A)Nonstatistical sampling must use random selection techniques.
• B)The sample size when using nonstatistical sampling methods is generally not comparable to that determined using statistical sampling methods.
• C)Nonstatistical sampling does not use a formal process to mathematically estimate the allowance for sampling risk.
• D)When using nonstatistical sampling,the audit team is not required to select a sample that is representative of the population.

Comprehend how different types of charts (e.g., Profit-volume chart, Cost-volume-profit chart) are used in managing operations and making financial decisions.

Calculate and interpret fixed and variable costs within the manufacturing and sales context.

Analyze sales mix and its effects on the company's overall performance.

Determine the break-even point in units and dollars, and understand its significance for business planning.

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Definitions:

Actual Fraud

Deliberate deception by one party to secure unfair or unlawful gain, or to deprive another party of a legal right.

Ultramares Rule

A legal principle that limits the liability of accountants for negligence to parties with whom they are in direct contractual relationship unless fraud is involved.

Duty of Care

A legal obligation requiring individuals and entities to exercise a reasonable standard of care to avoid causing harm to others.

Positive Net Worth

The financial status where total assets exceed total liabilities.