What Is One of the Primary Benefits of Stratifying a Population

question 19

Multiple Choice

What is one of the primary benefits of stratifying a population?

• A) It allows different types of audit procedures to be performed on large and small transactions or components.
• B) It allows the auditor to have a higher likelihood of reaching a favorable conclusion with respect to the client's financial statements.
• C) It allows the auditor to reduce the necessary sample size.
• D) It reduces the auditor's exposure to nonsampling risk.

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Definitions:

Total Resistance

The sum of all resistances in an electrical circuit, influencing the overall current flow.

Ohm's Law

A fundamental principle stating that the current through a conductor between two points is directly proportional to the voltage across the two points, given the resistance remains constant.

Earth Ground

A ground established by driving a metal rod into the earth.

Ground Symbol

A universal symbol used in electrical diagrams and schematics to denote the common return path for an electric current, or a direct physical connection to the Earth.