When Using a Statistical Sampling Plan, the Auditors Would Probably

question 57

Multiple Choice

When using a statistical sampling plan, the auditors would probably require a smaller sample if the:

• A) Population increases.
• B) Desired allowance for sampling risk decreases.
• C) Desired risk of incorrect acceptance increases.
• D) Expected deviation rate increases.

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Definitions:

Inferior Good

A category of products whose demand diminishes when consumer income rises, in opposition to normal goods.

Wage Rate

The fixed amount of compensation or payment provided to an employee by an employer in return for work performed, typically expressed per hour or year.

Utility Maximizer

An individual or entity that seeks to achieve the highest level of satisfaction possible from their consumption choices, given their resources.

Net Seller

An individual or entity that sells more than it purchases in a given market, often resulting in a net inflow of funds.