Statements or Examples That Relate to Audit Sampling Are Listed

question 45

Short Answer

Statements or examples that relate to audit sampling are listed below. Match the statements 1 through 5 to the term (A through D) that it best describes and place the identifying letter in the space provided.
A: Statistical sampling
B: Non-statistical sampling
C: Sampling risk
D: Non-sampling risk
____ 1. Jones CPA selected a sample and evaluated the results of her sample using the laws of probability.
____ 2. Wilson CPA checked to see if there were any signatures in the credit approval box on a sample of sales orders rather than looking only for authorized signatures.
____ 3. Based on a statistical sample, Jackson CPA concluded that the client's control system was working on an acceptable basis when in fact the population deviation rate was unacceptable.
____ 4. For his sample Barnum CPA selected all invoices over $1,000 and all invoices recorded on the 15^th of each month.
____ 5. When a client could not produce an invoice for a sample selected by the auditor, the auditor accepted the client's assurance that the invoice contained the appropriate approval.

---

Definitions:

News Corporation

A global, diversified media and information services company focused on creating and distributing authoritative and engaging content to consumers.

Concentrated Ownership

Refers to situations where a large fraction of shares or equity in a company or industry is owned by a small number of shareholders, leading to a high level of control.

Mass Media

Forms of communication designed to reach large audiences through mediums such as television, radio, newspapers, and the internet.

Televised Flow

Refers to the dissemination of cultural, social, and informational content through television networks across different regions and populations.