In a Variables Sampling Application,which of the Following Would Not

question 70

Multiple Choice

In a variables sampling application,which of the following would not ordinarily be documented by the audit team?

• A)A description of the substantive procedures performed on each item selected.
• B)Information on how the audit team verified the completeness of the identified population.
• C)The method and parameters used to determine sample size
• D)The audit team's rationale for the use of monetary unit sampling as opposed to other sampling techniques.

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Definitions:

Adjusted

Refers to the modification of financial statements to provide a more accurate picture by removing the effects of non-recurring transactions or events.

Permanent Differences

Differences between taxable income and accounting income that are not temporary and hence do not reverse over time.

Pretax Financial Income

The total earnings of a company before any taxes have been deducted.

Taxable Income

The amount of an individual's or corporation's income that is subject to income tax, after exemptions, deductions, and allowances are factored in.