Auditors Who Prefer Statistical to Nonstatistical Sampling Believe That the Principal

question 47

Multiple Choice

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its unique ability to

• A) Define the precision required to provide audit satisfaction.
• B) Mathematically measure uncertainty.
• C) Establish conclusive audit evidence with decreased audit effort.
• D) Promote a more legally defensible procedural approach.

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Definitions:

Delta Secondary

A configuration for the secondary winding of a transformer where the ends of the coils are connected to form a triangle-like circuit, allowing it to supply both three-phase and single-phase load currents.

Center-Tapped Transformer

A transformer that has a wire connected to the electric midpoint of its winding. Generally, the secondary winding is tapped.

High Leg

A certain type of three-phase power connection that exhibits a higher voltage on one leg when measured to ground than on the other legs.

Output Power

The amount of power, typically measured in watts, that a device, system, or process delivers to its load.