In Statistical Sampling,setting the Appropriate Confidence Level and Desired Sample

question 6

Multiple Choice

In statistical sampling,setting the appropriate confidence level and desired sample precision are decisions made by the auditor that will affect sample size for a substantive procedure.Which of the following should not be a factor in the choice of desired precision?

• A) The sampling risk.
• B) The size of an account balance misstatement considered material.
• C) The audit resources available for execution of the sampling plan.
• D) The objectives of the audit test being conducted.

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Definitions:

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Traits

Characteristic features or qualities distinguishing a person or thing, often inherited in the context of genetics.

Fixations

In psychoanalytic theory, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.