For Each of the Following Statements,indicate Whether It Is More

question 27

Short Answer

For each of the following statements,indicate whether it is more closely related to attributes sampling or variables sampling by using the letter A (attributes)and V (variables).
1___.Used to allow the auditor to assess risk of material misstatement.
2___.Sampling risks include the risk of incorrect acceptance and risk of incorrect rejection.
3___.The population variability affects the sample size.
4___.The auditor's sample would include transactions or components comprising the account balance.
5___.Sampling risks include the risk of underreliance and the risk of overreliance.
6___.The auditor's sample would include potential applications of control policies and procedures.
7___.This type of sampling is influenced by the auditor's acceptable level of detection risk.

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Definitions:

Daily Sales Rate

The average amount of sales generated per day over a specific period of time.

Composite Score

A metric that combines multiple individual scores or indicators into a single overall measure.

Composite Score

An aggregated score made up of multiple individual scores or metrics to provide a comprehensive evaluation.

Holding Cost Rate

The percentage of the inventory value charged as holding cost over a specific period of time.