The Following Are Statements or Examples Related to Audit Sampling

question 27

Short Answer

The following are statements or examples related to audit sampling applications.Indicate,using the correct letter,which concept is most closely associated with the statement or example.Each concept may be related to more than one statement or example.
A.Statistical sampling
B.Nonstatistical sampling
C.Sampling risk
D.Nonsampling risk
____ 1.C.Jones,CPA,selected a sample and evaluated the results of her sample using the laws of probability.
____ 2.G.Wilson,CPA,checked to see if any signature was in the credit approval box on a sample of sales orders rather than looking for only authorized signatures.
____ 3.Based on a statistical sample,M.Jackson,CPA,concluded that the client's control was functioning effectively when the deviation rate in the population was actually unacceptable.
____ 4.I.Barnum,CPA,selected all invoices over $1,000 and all invoices recorded on the 15th of each month for his sample.
____ 5.When a client could not produce an invoice for a sample selected by the auditor,the auditor accepted the client's assurance that the invoice contained the appropriate approval.

Calculate net income, retained earnings, and earnings per share.

Understand the process for preparing closing entries in accounting.

Prepare and interpret income statements, balance sheets, and statements of stockholders' equity.

Comprehend the cash flow statement and classify transactions accordingly.

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Definitions:

Psychodynamic Model

A view that explains personality in terms of conscious and unconscious forces, such as unconscious desires and beliefs.

Abnormal Behavior

Any behavior that deviates significantly from what is considered typical or normal within a society or cultural context, potentially indicating a psychological disorder or distress.

Unconscious Conflicts

Hidden internal struggles often stemming from childhood experiences, which can influence behaviors and emotions without one's awareness.

Cystic Acne

A severe form of acne that involves blockages and inflammation deep within the hair follicles, resulting in large, painful cysts beneath the skin’s surface.