Which of the Following Would Be an Improper Technique When

question 43

Multiple Choice

Which of the following would be an improper technique when using monetary-unit statistical sampling in an audit of accounts receivable?

• A) Combining negative and positive dollar misstatements in the appraisal of a sample.
• B) Using a sampling technique in which the same account balance could be selected more than once.
• C) Selecting a random starting point and then sampling every nth dollar.
• D) Defining the sampling unit in the population as an individual dollar and not as an individual account balance.

---

Definitions:

Selling Division

A segment of a company specifically focused on sales and distribution of products or services.

Transfer Price

The price at which divisions of a company transact with each other, used for the transfer of goods and services within an organization.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace, determined by the forces of supply and demand.

Marginal Cost

The financial implication of producing an extra unit of a product or service.