Variables Estimation Sampling Is Used

question 43

Multiple Choice

Variables estimation sampling is used

• A) when the auditor does not expect any errors in an account balance.
• B) to obtain a level of confidence that key attributes for the sample tested can be inferred to be in existence for the entire population.
• C) when the auditor conducts tests of controls.
• D) if the auditor expects more than a few errors in an account balance.

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Definitions:

Child Tax Credit

A tax benefit that allows taxpayers to reduce their tax liability on a dollar-for-dollar basis for each qualifying child under a certain age.

AGI

Adjusted Gross Income, which is total income minus specific deductions, used to determine tax liability.

Adoption Credit

A tax credit offered by the IRS to offset some expenses involved in the legal adoption of a child.

Modified AGI

Modified Adjusted Gross Income, an income measure used for tax purposes, adjusting the AGI for specific deductions or exclusions.