For Monetary-Unit Sampling, a Sampling Interval of 400 Means That

question 45

Multiple Choice

For monetary-unit sampling, a sampling interval of 400 means that

• A) Every 400^th item in the account will be selected in the sample.
• B) The average size of items in the account is 400.
• C) Every 400^th dollar in the account will be included in the sample.
• D) The average misstatement in sample items is $400.

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Definitions:

Apparent Agency

A legal concept where a principal is liable for the acts of an agent who appears to be acting within the scope of authority, irrespective of whether the principal actually granted such authority.

Express Agency

An agency relationship created by explicit instruction or agreement, where the agent is authorized to act on behalf of the principal.

Implied Agency

A type of agency relationship created by the actions of the parties involved, not by written agreement, where an agent is presumed to have authority to act on behalf of another.

Nonprogrammed Decision

A new, complex decision that requires a creative solution.