Which of the Following Is an Advantage of Statistical Sampling

question 36

Multiple Choice

Which of the following is an advantage of statistical sampling?

• A)It permits a less rigid approach to unique audit problems.
• B)It uses an evaluation method that allows evaluation of the sample on factors other than the sample evidence.
• C)It permits auditors to use a computer to select a random sample.
• D)It requires auditors to be exact in their judgments on risk and materiality.

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Definitions:

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure between the middle ear and the atmosphere.

Seasonal Inventory

Inventory stockpiled in anticipation of seasonal demand peaks to ensure adequate supply and optimal service levels.

Demand

The desire and willingness of consumers to purchase goods or services at a given price over a specific time period.

Capacity

Pertains to the highest amount of production a business can maintain for creating a product or delivering a service.