When Testing Internal Controls,which of the Following Statements Is Not

question 10

Multiple Choice

When testing internal controls,which of the following statements is not true with respect to the use of nonstatistical sampling?

• A)Nonstatistical sampling is permitted in the audits of both public and nonpublic entities.
• B)Nonstatistical sampling does not require the use of random selection techniques.
• C)When using nonstatistical sampling,auditors are required to quantify the parameters used to determine sample size.
• D)Auditors are required to use professional judgment in evaluating the sample results in a nonstatistical sampling application.

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Definitions:

Amnesia

Amnesia is a loss of memory due to brain injury, disease, or psychological trauma, affecting the ability to recall past events.

Obsessive Compulsive Disorder (OCD)

A mental disorder characterized by intrusive thoughts (obsessions) that produce uneasiness and repetitive behaviors (compulsions) aimed at reducing these thoughts.

Post-Traumatic Stress Disorder (PTSD)

A psychological disorder caused by either undergoing or observing a distressing incident, identified by involuntary memories, bad dreams, and intense worry.

Seasonal Affective Disorder (SAD)

A type of depression that occurs at a specific time of year, usually in winter.