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:

Polar Bear's Skin

The black skin of a polar bear, hidden beneath its transparent, hollow fur, which helps in absorbing sunlight to keep the bear warm in cold environments.

Tissue

In multicelled organisms, specialized cells organized in a pattern that allows them to perform a collective function.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often requiring the identification and separation of fact from opinion.

Quality Of Information

The degree to which information is accurate, reliable, relevant, and easily accessible.