If the Auditor Uses a Statistical Sampling Program for the Internal

question 29

Multiple Choice

If the auditor uses a statistical sampling program for the internal control test,

• A)the auditor uses judgment to determine the allowance for non-sampling risk
• B)the auditor uses judgment to determine the allowance for sampling risk
• C)the statistical program will calculate an allowance for sampling risk
• D)the statistical program will calculate an allowance for non-sampling risk

---

Definitions:

Management's Decision

Decisions made by an organization's management, guiding the direction, operations, and administrative actions of the company.

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, fundamentally driving its revenue.

Market-Creating Innovation

Innovations that introduce new products or services, creating new demand and potentially new markets.

Lower-Income Segment

A portion of the population or market characterized by lower earnings, often targeted by businesses offering more affordable products or services.