Auditors Who Prefer Statistical Sampling to Nonstatistical Sampling May Do

question 16

Multiple Choice

Auditors who prefer statistical sampling to nonstatistical sampling may do so because statistical sampling helps the auditor

• A) Measure the sufficiency of the evidential matter obtained.
• B) Eliminate subjectivity in the evaluation of sampling results.
• C) Reduce the level of tolerable misstatement to a relatively low amount.
• D) Minimize the failure to detect a material misstatement due to nonsampling risk.

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Definitions:

Significance Level

The threshold below which a p-value must fall for an effect to be considered statistically significant, often denoted as alpha.

National Average

A statistic that represents an average or central value reflecting a condition or attribute throughout a nation.

Surgical Site Infections

Infections that occur after surgery in the part of the body where the surgery took place, posing significant risks for recovery.

Sample Proportion

The ratio of members in a statistical sample that are part of a particular subset of that sample.