An Auditor Has Taken a Large Sample from an Audit

question 4

Multiple Choice

An auditor has taken a large sample from an audit population that is skewed in the sense that it contains a large number of small dollar balances. The auditor can conclude

• A) The sampling distribution is not normal; therefore MUS sampling will more accurately define the nature of the population.
• B) The sampling distribution is normal; therefore the confidence coefficient value can be used to evaluate the sample results.
• C) The sampling distribution is not normal; thus attribute sampling is the only alternative statistical tool that can be appropriately used.
• D) None of the other answers is correct.

---

Definitions:

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Situational Demands

External pressures or circumstances that necessitate a response or adjustment from an individual or group.

Attention

The mental act of focusing attention on a particular element of the surroundings, while disregarding other aspects.

Flynn Effect

The rise in IQ scores over generations in many nations.