An Auditor Is Most Likely to Use Statistical Sampling Under

question 57

Multiple Choice

An auditor is most likely to use statistical sampling under which of the following situations?

• A)Random numbers can be associated with population items.
• B)Strictly defensible results based on mathematics are not necessary.
• C)The auditor has a very good knowledge of the population.
• D)The population is very diverse with some segments especially prone to misstatement.

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Definitions:

Compensation Plan

A structured policy designed to reward employees for their contributions to an organization, including salaries, bonuses, and benefits.

Salary Compensation Plan

A structured pay system for employees, detailing base salary, benefits, bonuses, and possibly commissions.

Mental Demands

The cognitive and emotional effort required to perform a task or job, including problem-solving, decision-making, and managing stress.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a specific position within an organization.