If the Size of the Sample to Be Used in a Particular

question 56

Multiple Choice

If the size of the sample to be used in a particular test of controls has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures:

• A)no inferences can be drawn from the sample.
• B)the auditor has committed a nonsampling error.
• C)depending on the size of the sample chosen, the auditor may actually achieve desired precision.
• D)the auditor will have to evaluate the results by reference to the principles of discovery sampling.

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Definitions:

Fairness and Honesty

Fairness and honesty refer to the ethical practices of being impartial, just, and truthful in personal actions and business transactions.

Whistleblowing

The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies.