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.

---

Definitions:

Dividend

Money distributed by a corporation to its shareholders, often as a share of the earnings.

Reward-to-volatility Ratio

A ratio used to assess the return of an investment relative to its risk, calculated by dividing the excess return of an investment by its standard deviation.

Standard Deviation

A statistical measure of the dispersion of a set of data from its mean, often used to quantify the risk associated with a particular investment.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in one year or less, representing a secure, low-risk investment option.