Sampling Is Not Required When

question 59

Multiple Choice

Sampling is not required when

• A) it is the first year that the auditor has done the audit for a client.
• B) the auditor is conducting tests of controls.
• C) an audit procedure is conducted on an entire group of transactions.
• D) the client requests the auditor not to collect samples of certain transactions.

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Definitions:

Asset Management

An orderly process for building, running, maintaining, and disposing of assets in a way that minimizes expenses.

Profitability

A measure of the efficiency of a company in generating profits from its operations, often expressed as a percentage of revenues.

Debt

Money owed by one party to another under the condition that it will be repaid, often with interest, at a future date.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its market price.