Which of the Following Best Describes the Auditors' Response to a Client's

question 53

Multiple Choice

Which of the following best describes the auditors' response to a client's use of statistical sampling techniques to estimate the inventory?

• A)The auditors should satisfy themselves as to the statistical validity of the technique,and the reasonableness of the allowance for sampling risk and sampling error used.
• B)The auditors should qualify their opinion,because the client must perform a complete count of the inventory.
• C)The auditors should increase the extent of their test counts to compensate for the use of a statistical technique.
• D)The auditors should withdraw from the engagement.

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Definitions:

Example

A representative instance or case of a particular phenomenon, often used to illustrate a theory or explain an abstract concept.

Allport

Refers to Gordon Allport, an American psychologist known for his theory of personality traits.

Central Traits

Fundamental personality characteristics that are considered core to an individual's identity, according to Allport's theory.

Grace

A quality of acting with kindness, compassion, and care, often without expecting anything in return.