An Auditor Is Preparing to Sample an Entity's Customer Receivables

question 50

Multiple Choice

An auditor is preparing to sample an entity's customer receivables for overstatement. A statistical sampling method that automatically provides stratification when using systematic selection is:

• A)attribute sampling.
• B)ratio-estimation sampling.
• C)monetary-unit sampling.
• D)mean-per-unit sampling.

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Definitions:

Impaired Decision Making

A reduction in the ability to make logical, considered decisions, potentially due to cognitive limitations, emotional factors, or neurological issues.

Harmony

a state of agreement, accord, or synchronization among components which often creates a pleasing or orderly whole.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Unanimity

Complete agreement or concord among all members or participants, often used in the context of group decisions or jury verdicts.