Sampling Is Not Required When

question 59

Multiple Choice

Sampling is not required when

• A) it is the first year that the auditor has done the audit for a client.
• B) the auditor is conducting tests of controls.
• C) an audit procedure is conducted on an entire group of transactions.
• D) the client requests the auditor not to collect samples of certain transactions.

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Definitions:

Interest Rate

The percentage of the loan amount charged to the borrower as interest, usually presented as an annual rate.

IFRS

The International Financial Reporting Standards are a set of global accounting standards developed by the IFRS Foundation for preparing financial statements.

Receivables

Short-term financial assets typically arising from sales of goods or services on credit that a company expects to collect within a year.

Reported Separately

Items or transactions that are significant enough to be listed individually in financial statements or reports to enhance clarity.