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:

Intrinsic Benefits

Advantages or positive outcomes that are inherent or natural to a process or activity, providing internal satisfaction.

Market Share

is the percentage of an industry's sales that a particular company controls, serving as a measure of its competitiveness.

Extended Warranty

An additional guarantee offered on a product, extending the period during which a manufacturer or retailer promises to repair or replace it.

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation.