Which of the Following Is Not True for Nonstatistical Sampling

question 99

Multiple Choice

Which of the following is not true for nonstatistical sampling?

• A) applies mathematical rules that allows auditors to quantify sampling risk
• B) auditors select items for the sample that they believe would provide them the most information
• C) reach conclusion about the population on a judgmental sample
• D) often called judgmental sampling

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Definitions:

Canadian Tax Law

The laws and regulations that define how taxes are calculated, collected, and enforced in Canada, covering income, corporate, sales taxes, and more.

Depreciation Method

An accounting technique used to allocate the cost of a tangible asset over its useful life.

Stand-Alone Principle

A method in capital budgeting where a project is evaluated based on its own profitability without considering the impact of other projects or financing methods.

Incremental Cash Flows

The additional cash inflows or outflows expected from taking on a new project or investment, essential for assessing its potential profitability.