The Assurance Factor for Nonstatistical Sampling Is Based on

question 27

Multiple Choice

The assurance factor for nonstatistical sampling is based on

• A) The number of items in the account.
• B) Auditor judgment.
• C) The risk of misstatement in the account and the level of desired assurance.
• D) Variability in the population and the risk of misstatement in the account.

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Production Possibilities Frontier

A graph that shows the combinations of two goods that an economy can produce using all available resources and technology efficiently.

Constant

A value or factor that does not change in mathematical expressions or experiments, representing stability within a specified context.