A Disadvantage of Using a Systematic Random Selection Procedure Is

question 62

Multiple Choice

A disadvantage of using a systematic random selection procedure is that:

• A)This type of procedure does not permit the auditor to measure the exposure to sampling risk.
• B)This type of procedure does not make all items available for selection.
• C)This type of procedure requires that the population be arranged in a random order.
• D)This type of procedure provides the auditor with a higher level of exposure to nonsampling risk compared to other selection procedures.

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Definitions:

Specifications

Detailed descriptions of the requirements, characteristics, or performance standards of a product, service, or material.

Request for Quotation (RFQ)

A formal solicitation process where suppliers are asked to provide bid proposals on specified goods or services, including price and delivery details.

Supplier Risk

The potential for negative impacts to a company's operations, profitability, or reputation resulting from its suppliers' actions or inactions.

Strategic Purchase

The acquisition of goods or services that are vital to a company's operations or strategy, often involving significant expenditure and planning.