An Advantage of Statistical Sampling Over Nonstatistical Sampling Is That

question 122

Multiple Choice

An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to

• A) Eliminate the risk of nonsampling error.
• B) Reduce the level of audit risk and overall materiality to a relatively low level.
• C) Measure the sufficiency of the evidence gathered.
• D) Minimize the failure to detect misstatements and irregularities.

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Definitions:

Production Blocking

Occurs in brainstorming sessions when an individual is unable to share ideas due to others speaking, leading to a decrease in idea generation.

Constructive Conflict

A type of conflict that leads to positive outcomes, encouraging growth and improvement.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, particularly when dealing with complex problems.

Scenario Planning

Scenario planning is a strategic planning method that organizations use to envision and prepare for various future possibilities.