All of the Following Are Correct Regarding Variables Sampling,except

question 53

Multiple Choice

All of the following are correct regarding variables sampling,except

• A) variables sampling is used to examine a population when auditors want to estimate the amount (or value) of some characteristic of that population.
• B) the risk of incorrect rejection is of more concern to auditors than the risk of incorrect acceptance.
• C) auditors can use either statistical or nonstatistical sampling approaches to variables sampling.
• D) to determine if an account balance is fairly stated, auditors compare the adjusted sample estimate of the misstatement to the tolerable misstatement.

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Definitions:

Primary Election

A preliminary election where voters decide their party’s candidates for a forthcoming general election.

Expected Number

The anticipated value in a probability distribution, representing the mean of a random variable.

Binomial Distribution

A probability distribution that summarizes the likelihood of a variable, which has only two possible outcomes, across a number of trials.

Normal Approximation

An approach in statistics for estimating the probability of different outcomes under the assumption that the data follow a normal distribution.