Below Are Statements or Examples Related to Audit Sampling Applications

question 86

Short Answer

Below are statements or examples related to audit sampling applications.Indicate,using the correct letter,which concept is most closely associated with the statement or example.Each concept may be related to more than one statement or example.
A.Statistical sampling.
B.Nonstatistical sampling.
C.Sampling risk.
D.Nonsampling risk.1___.Jones,CPA,selected a sample and evaluated the results of her sample using the laws of probability.2___.Wilson,CPA,checked to see if any signature was in the credit approval box on a sample of sales orders rather than looking for only authorized signatures.3___.Based on a statistical sample,Jackson,CPA,concluded the client's control was functioning effectively when the deviation rate in the population was actually unacceptable.4___.Barnum,CPA,selected all invoices over $1,000 and all invoices recorded on the 15th of each month for his sample.5___.When a client could not produce an invoice for a sample selected by the auditor,the auditor accepted the client's assurance that the invoice contained the appropriate approval.

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Definitions:

Non-controlling Interest

Non-controlling interest is an ownership interest in a business entity by shareholders that are not the parent company or controlling shareholders, reflecting their share of the equity in a subsidiary.

Subsidiary

A business that is under the control of another business, referred to as the parent company, by holding a majority of its voting shares.

Attributable Interest

A financial term referring to the ownership interest or stake that a person or entity has in an investment, often influencing the share of profits or losses they would receive.

Consolidation

The process of combining the financial statements of two or more entities to form a single set of statements.