Non-Statistical Sampling May Be Better to Use Than Statistical Sampling

question 1

Multiple Choice

Non-statistical sampling may be better to use than statistical sampling when ________.

• A)the auditor has insufficient knowledge about the population to take a statistical sample
• B)the inherent risk of error in the population is low
• C)the population is known to be diverse,with a high inherent risk of error
• D)auditors are not technically proficient in sampling

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Definitions:

Dollar-Denominated Deposit

A deposit at a bank or financial institution available in U.S. dollars, regardless of the location of the bank or the nationality of the depositor.

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under jurisdiction of the Federal Reserve.

Municipal Bonds

Debt securities issued by a state, municipality, or county to finance its capital expenditures, typically offering tax-free interest payments to investors.

Debt Obligation

A legally binding agreement to repay borrowed money, typically with interest, at predefined dates in the future.