George Melkonian Wanted to Determine Whether His Auditing Class Knew

question 25

Multiple Choice

George Melkonian wanted to determine whether his auditing class knew how different factors influence sample size. He made two statements:
(i) "An increase in the expected rate of deviation of the population to be tested will decrease sample size."
(ii) "An increase in the tolerable rate of deviation will decrease sample size."
George asked his class to indicate which of the statements, if any, were false.

• A) (i)
• B) (ii)
• C) (i) and (ii) are false
• D) neither of the two statements is false

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Definitions:

Computer

An electronic device that executes specific tasks or calculations according to a set of instructions or software.

Utilized

Employed or made use of effectively.

Business

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.

Journal Entry

The recording of financial transactions in the journal as part of the accounting process, where each transaction includes a debit and a credit.