KSamantha,CPA,used Stratified Random Selection in the Statistical Sampling Plan

question 39

Multiple Choice

K.Samantha,CPA,used stratified random selection in the statistical sampling plan.Which of the following is the most likely reason this approach was used?

• A) It eliminates the need for random selection.
• B) The population is relatively homogenous in terms of the dollar amount of components or transactions.
• C) It reduces the expected sample size.
• D) It eliminates the need for calculating the projected misstatement in the account being examined.

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Definitions:

Disadvantages

Negative aspects or drawbacks associated with a situation, decision, or action.

Design Element

Fundamental aspects or components used in creating a visual design, such as color, shape, line, texture, space, and form.

Contrast

The state of being strikingly different from something else in juxtaposition or close association.

Isolate Elements

To separate specific parts or components from a whole for individual consideration or analysis.