A Sampling Plan in Which an Initial Sample Is Selected

question 5

Multiple Choice

A sampling plan in which an initial sample is selected and the audit team either draws a final conclusion or selects additional items before drawing a final conclusion is called

• A)Attributes sampling.
• B)Discovery sampling.
• C)Sequential sampling.
• D)Statistical sampling.

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Definitions:

Expected Useful Life

It refers to the estimated duration a fixed asset is expected to be economically useful to the owner, beyond which it is considered to depreciate.

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the reduction of debt through regular payments of principal and interest over a set period.

Accumulated Amortization

The total amount of amortization expense that has been applied to intangible assets over time, reducing their book value on the balance sheet.

Intangible Assets

Assets that lack physical substance but have economic value due to rights, privileges, or advantages they confer to the business, such as patents, trademarks, and copyrights.