Audit Sampling Is the Application of Audit Procedures to Less

question 32

True/False

Audit sampling is the application of audit procedures to less than 100 per cent of items within a population.

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Definitions:

Gross Method

An accounting approach that documents purchases at their complete invoice cost without subtracting any offered cash rebates.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment period, interest rate, and any discounts for early payment.

Gross Margin Ratio

A financial metric expressing the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.

Net Sales

The total revenue from sales of products or services less returns, allowances, and discounts.