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Audit Sampling Is the Application of an Audit Procedure to Less

question 32

True/False

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.


Definitions:

Business Judgment Rule

A legal principle that protects company directors from liability for decisions made in good faith and in the interest of the company.

Good Faith

The honest intention to act without taking an unfair advantage over another party during the execution of deals, contracts, and transactions.

Ultra Vires Defense

A legal defense arguing that a corporation acted beyond the scope of its powers as defined in its charter or laws.

State's Attorney General

The chief legal advisor and law enforcement officer of a state or territory, responsible for representing the public interest and prosecuting legal actions.

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