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:

Disadvantages

Factors or conditions that put someone or something at a competitive drawback or lower efficiency.

Harvest Goal

An entrepreneur's strategic objective to eventually realize a venture's value through a sale, merger, or initial public offering (IPO).

Venture

A business undertaking that involves risk, often utilized in the context of new or speculative enterprises.

Shareholder Return

The total earnings a shareholder receives from an investment, including dividends and capital gains.