Sampling Risk

question 10

Multiple Choice

Sampling risk:

• A) is a function of statistical procedures.
• B) is a function of the statistical method chosen.
• C) is a function of the audit, regardless whether statistical methods are used or not.
• D) Both a and b.

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Definitions:

Rate Of Yield

A financial metric that calculates the amount of profit or loss an investment generates, relative to its cost.

Preferred Stock

A type of stock that offers dividends and/or liquidation preference over common stock.

Par

The face value of a bond or stock, or the standard level for a currency.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.