Use of Statistical Sampling

question 36

Multiple Choice

Use of statistical sampling:

• A) prevents errors.
• B) is easier to defend in court.
• C) allows the auditor to infer conclusions about the sample.
• D) None of the above.

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Definitions:

Variable Costs

Costs that change in proportion with the level of output or activity.

Fixed Costs

Costs that do not change with an increase or decrease in the amount of goods or services produced or sold.

Corporate Tax Rate

The percentage of a company's taxable income that it pays to federal, state, or local tax authorities.

Demand Shock

An event that affects the demand for goods and services in the economy.