Which of the Following Is Not True with Respect to the Use

question 65

Multiple Choice

Which of the following is not true with respect to the use of nonstatistical sampling?

• A)The use of nonstatistical sampling generally results in a smaller sample size.
• B)The use of nonstatistical sampling is permissible under generally accepted auditing standards.
• C)Auditors may use block and haphazard selection methods when using nonstatistical sampling.
• D)The use of nonstatistical sampling does not permit the auditor to control exposure to the risk of overreliance.

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Definitions:

Credit Sales

Sales made by a business where payment is delayed, allowing the customer to pay at a later date.

Selling Expenses

Costs incurred directly in the selling of products or services, including advertising, sales commissions, and retail store expenses.

General and Administrative Expenses

Costs related to the overall operations of a company that are not directly tied to a specific functional area.