If the Size of the Sample to Be Used in a Particular

question 2

Multiple Choice

If the size of the sample to be used in a particular test of controls has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures

• A) No inferences can be drawn from the sample.
• B) The auditor has committed a nonsampling error.
• C) Depending on the size of the sample chosen, the auditor may actually achieve desired precision.
• D) The auditor will have to evaluate the results by reference to the principles of discovery sampling.

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Definitions:

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries of the same company.

Part Y6P

Could refer to a specific component or piece identified by the part number "Y6P"; likely specific to a certain type of machinery, equipment, or product line.

Assembly Division

A segment of a manufacturing company responsible for putting together the final products.

Variable Cost

Expenses that change in proportion to the level of production or sales volume, such as raw materials and direct labor.