Harvey Jones,CPA,uses Statistical Sampling to Test Control Procedures

question 41

Multiple Choice

Harvey Jones,CPA,uses statistical sampling to test control procedures.What is a benefit of using statistical sampling?

• A) It provides a means of mathematically measuring the sampling risk that result from examining only a part of the data.
• B) It eliminates the use of judgment required of Jones because the AICPA has established numerical criteria for this type of testing.
• C) It increases Jones' knowledge of the client's prescribed procedures and their limitations.
• D) It is required by generally accepted auditing standards.

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Definitions:

Sampling Frame

The list or database from which a statistical sample is drawn for a research study, encompassing all the members of the population being studied.

Representative Sample

A subset of a population carefully chosen to accurately reflect the characteristics of the larger group for the purposes of research or analysis.

Probability Sample

A sampling method in which every member of the population has a known and non-zero chance of being selected for the study, allowing for generalized conclusions.

Voluntary Response Sample

A sampling method where participants self-select to be a part of a study, often leading to biased results due to the non-random nature of the sample choice.