An Auditor Using Nonstatistical Sampling Cannot Formally Measure Sampling Error

question 5

Multiple Choice

An auditor using nonstatistical sampling cannot formally measure sampling error and therefore must subjectively consider the possibility that the true population misstatement exceeds a tolerable amount. Which of the following factors should be considered by the auditor in making this assessment?

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Definitions:

Product Adopters

Individuals or entities that purchase or use new products soon after they are launched, often categorized into groups based on adoption timing.

Innovators

Individuals or organizations that are first to explore and adopt new technologies, processes, or practices before they become mainstream.

Information Sources

Origins or providers of data, facts, or knowledge, which can range from books and people to databases and websites.

Diffusion of Innovation

A theory that describes how new ideas, products, and technologies spread through cultures and societies over time.