In Which of the Following Types of Sampling Applications Is

question 30

Multiple Choice

In which of the following types of sampling applications is the auditor exposed to sampling risk?

• A)Statistical sampling: Yes; Nonstatistical sampling: Yes
• B)Statistical sampling: Yes; Nonstatistical sampling: No
• C)Statistical sampling: No; Nonstatistical sampling: Yes
• D)Statistical sampling: No; Nonstatistical sampling: No

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Definitions:

Allocation Base B

Refers to a criterion or standard used to distribute costs among different cost objects, often used in activity-based costing.

Step-down Method

An accounting approach for distributing overhead expenses across different departments or products.

Personnel Department

The division within an organization tasked with managing employee-related processes including hiring, training, and benefits administration, commonly known as the human resources (HR) department.

Information Technology

The employment of computers, storage systems, networks, and various physical assets, infrastructure, and procedures to generate, process, safeguard, store, and share every type of electronic information.