Auditors Who Prefer Statistical Sampling to Nonstatistical Sampling May Do

question 16

Multiple Choice

Auditors who prefer statistical sampling to nonstatistical sampling may do so because statistical sampling helps the auditor

• A) Measure the sufficiency of the evidential matter obtained.
• B) Eliminate subjectivity in the evaluation of sampling results.
• C) Reduce the level of tolerable misstatement to a relatively low amount.
• D) Minimize the failure to detect a material misstatement due to nonsampling risk.

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Definitions:

Utility Function

A form of mathematical model that orders a person's preferences across a range of products and services.

Ice Skating Lessons

Instructional sessions aimed at teaching individuals how to skate on ice, often covering basic skills to advanced techniques.

Piano Lessons

Formal instruction in playing the piano, typically involving one-on-one sessions between a student and a teacher.

Interest Rate

The fee, shown as a fraction of the total amount lent, that a lender imposes on a borrower for the utilization of resources.