Auditing Standards Permit Both Statistical and Nonstatistical Methods of Audit

question 40

True/False

Auditing standards permit both statistical and nonstatistical methods of audit sampling.

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Definitions:

Unitary Elastic

In economics, it describes a situation where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at each price level.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.

Substitutes

Products or services that can replace or be used in place of one another.