In Which of the Following Situations Would the Use of Classical

question 48

Multiple Choice

In which of the following situations would the use of classical variables sampling (as opposed to monetary unit sampling) be most appropriate?

• A) When a larger number of misstatements are anticipated.
• B) When overstatement errors (as opposed to understatement errors) are of more importance.
• C) When individual components and account balances are higher in comparison to the tolerable misstatement established by the auditor.
• D) When the auditor wishes to begin sampling during the interim period.

---

Definitions:

Cluster Housing

A residential development design where homes are built in close proximity to each other, often around shared open space, with the goal of preserving natural environmental features and providing a sense of community.

High-Density

Refers to a high level of mass per unit volume, often used in the context of populations, materials, or data storage.

Common Space

Areas accessible and used by the public or a community, including parks, shared gardens, and public squares.

Urban Areas

Regions characterized by higher population density and vast human features in comparison to areas surrounding them.