If the Association of Population Items with Random Numbers Is

question 51

Multiple Choice

If the association of population items with random numbers is difficult and expensive, but the auditor does not have sufficient knowledge about the population, the auditor should ________.

• A) use non-statistical sampling
• B) use statistical sampling
• C) use a computer to analyze the population and then decide which method to use
• D) first determine the possible impacts of an error in the population on the financial statements to decide if sampling is reasonable

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Definitions:

Losses

The negative financial result from business activities when costs exceed revenues.

Market Message

A communication or signal sent through the movement in prices, volumes, or other market indicators that reflects the collective actions and sentiments of market participants.

Entrepreneurial Process

A sequence of steps starting from ideation to the creation and management of a new business venture.

Competitive Market Economy

An economic system where a large number of buyers and sellers interact, resulting in the efficient allocation of resources through competitive pricing.