Sampling Risk Is the Risk That the Sample Chosen by the Auditor

question 7

True/False

Sampling risk is the risk that the sample chosen by the auditor is not representative of the population available for testing.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Fiduciary Duty

An obligation under the law for an individual to prioritize another's interest, often involving someone trusted with managing finances or assets.

Special Litigation Committee

A committee often formed within a corporation's board of directors to decide on legal strategies or manage specific litigation matters, especially in derivative lawsuits.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often its officers or directors, for harm done to the corporation.