Why Might an Auditor Use Sampling

question 28

Multiple Choice

Why might an auditor use sampling?

• A) Because testing and entire accounting system is impractical and unnecessary.
• B) Because the client has not paid for full testing of the financial statements.
• C) The auditor deems that there is no fraud in a certain area of the business.
• D) The auditor deems that there is fraud in a certain area of a business.

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Definitions:

J/L Ratio

A ratio used in economic models to represent some aspect of the economy, though the exact interpretation can vary depending on the specific context (e.g., job-to-liquidity ratio, job-to-loss ratio); further context is needed for a precise definition.

Cartoonists' Labor

The work and effort put forth by cartoonists in creating animated or static cartoons, often considered a form of artistic labor.

Cartoonists' Labor

The effort and work performed by individuals skilled in creating cartoons, either for entertainment or commentary.

Production Function

A mathematical equation describing the maximum output of a system given certain inputs and resources.