When Using a Statistical Sampling Plan, the Auditor Calculates a Precision

question 42

Multiple Choice

When using a statistical sampling plan, the auditor calculates a precision interval around the population estimate. This involves:

• A) setting the tolerable misstatement amount.
• B) differentiating between known and estimated misstatements.
• C) determining the amount of the adjustment.
• D) All of the above.

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Definitions:

Indirect Format

A communication method in which the main point or conclusion is not stated at the beginning but rather built up to through supporting information.

Direct Format

A style of communication or documentation that is straightforward and clear, making use of explicit statements and commands.

Mind Mapping

A visual organization technique that represents ideas, tasks, or other items linked to a central concept in a nonlinear graphical format.

Limited Scope

Describes activities, projects, or investigations with a narrow focus or range of coverage, often to ensure more detailed or specialized outcomes.