Before Selecting a Sample, an Auditor Will Use Professional Judgment

question 34

Multiple Choice

Before selecting a sample, an auditor will use professional judgment to

• A) set the required level of confidence.
• B) set the tolerable error rate.
• C) select an appropriate population for testing.
• D) all of the above

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Definitions:

Analytical Methods

Techniques or procedures used to systematically analyze substances, financial data, or information to deduce qualitative and/or quantitative insights.

Project Analysis

The evaluation of the viability, stability, and profitability of a project through methods like cost-benefit analysis and risk assessment.

Rate of Return

The gain or loss on an investment over a specific period, expressed as a percentage of the investment's cost.

Required Return

The minimum rate of return on an investment that is necessary for it to be considered a viable option, taking into account its risk level.