Which of the Following Statements Is True Regarding Classical Variables

question 94

Multiple Choice

Which of the following statements is true regarding classical variables sampling?

• A)A very small dollar account has the same probability of being selected for examination as a very large dollar account.
• B)The determination of sample size requires to auditors to consider a smaller number of factors than are considered under MUS.
• C)Classical variables sampling should be used when the auditor has greater concerns for overstatement (rather than understatement)errors.
• D)The sampling unit is defined as each individual dollar in the account under examination.

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Definitions:

Efficient Capital Market

A market where all relevant information is fully and immediately reflected in securities prices, ensuring that securities are always fairly priced.

Security Prices

The market value or price at which securities, such as stocks or bonds, are bought and sold.

Available Information

Data or facts that are accessible to the public and can be used to make educated decisions or analyses.

Standard Deviation

A statistical measurement that illustrates the dispersion of a dataset relative to its mean, often used to gauge volatility.