An Auditor Has Taken a Large Sample from an Audit

question 30

Multiple Choice

An auditor has taken a large sample from an audit population that is skewed in the sense that it contains a large number of small dollar balances.The auditor can conclude

• A) the sampling distribution is not normal; therefore MUS sampling will more accurately define the nature of the population.
• B) the sampling distribution is normal; therefore the confidence coefficient value can be used to evaluate the sample results.
• C) the sampling distribution is not normal; thus attribute sampling is the only alternative statistical tool that can be appropriately used.
• D) none of the other answers is correct.

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Definitions:

Quantity Demanded

The overall volume of a certain good or service that individuals are prepared and financially able to buy at a set price during a specified interval.

Price

The payment expected, demanded, or issued in compensation for something.

Demand Schedule

A diagram showing the volume of an item that shoppers intend and can afford to buy across a range of prices.

Income

The financial gain received by an individual or a business in exchange for providing a good or service or through investing capital.