The Major Advantage to Using Statistical Techniques Is

question 24

Multiple Choice

The major advantage to using statistical techniques is:

• A) it limits the risk of incorrect acceptance.
• B) it relate sample size to audit risk.
• C) it limits the risk of inefficiency.
• D) it limits sample size to the smallest appropriate size.

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Definitions:

Foreign Exchange Gain

Profit arising from fluctuations in exchange rates which increase the value of foreign currency-denominated assets.

Exchange Rate

The valuation of a currency when converted to a different currency, which indicates the equivalent amount in the second currency.

Payment Date

The specific date on which dividends are actually paid out to shareholders or when a debt obligation must be repaid.

Controlling Influence

The power to govern the financial and operating policies of another entity through ownership, contract, or otherwise, often resulting in a parent-subsidiary relationship.