Statistical Sampling Is Widely Used for the Purposes of Estimation

question 128

Multiple Choice

Statistical sampling is widely used for the purposes of estimation in auditing due to its many advantages.Which of the following is NOT an advantage of statistical sampling in auditing?

• A) It allows auditors to generalise their results to the population with a known sampling error.
• B) It allows auditors to combine, and then evaluate collectively, samples collected by different individuals.
• C) The results are objective and defensible.
• D) None of the above.

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Definitions:

Sell

The act of exchanging a product or service for money or other compensation; it involves transferring ownership of an item or service from one party to another.

Crystal Import Co.

A hypothetical or actual company specializing in the importation and distribution of crystal and glassware products.

Hazardous Jet Fuels

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Common Carrier

A company that transports goods or persons for compensation and offers its facilities to the general public without discrimination. Compare contract carrier.