Which of the Following Is a Factor That the Auditor

question 84

Multiple Choice

Which of the following is a factor that the auditor should consider when choosing between nonstatistical and statistical sampling?

• A)Whether the audit staff is adequately trained to use statistical sampling.
• B)Whether the population lends itself to a random-based selection method.
• C)Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion.
• D)All of the above.

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Definitions:

Expected Rate Of Return

The anticipated amount of profit or loss an investment generates, based on historical or estimated performances.

Standard Deviation

A measure of the amount of variability or dispersion of a set of values; used in finance to represent the volatility of an investment.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.