When Using Statistical Sampling, the Auditor Would Most Likely Require

question 125

Multiple Choice

When using statistical sampling, the auditor would most likely require a smaller sample if the

• A) population increases.
• B) desired reliability decreases.
• C) desired precision interval narrows.
• D) expected exception rate increases.

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Definitions:

Binomial Formula

A mathematical formula used to determine the number of successes in a fixed number of trials in a binomial experiment, given the probability of success in each trial.

Independent

Refers to a variable in an experiment or study that is purposely manipulated or changed to observe its effect on other variables.

Successful Operations

Activities or series of activities within a process which achieve the intended goals or objectives efficiently and effectively.

Poisson Approximation

A statistical technique used to approximate the probabilities of events with a very low probability over a large number of trials.