Whenever Auditors Use Sampling, They Risk Making Incorrect Conclusions About

question 15

Multiple Choice

Whenever auditors use sampling, they risk making incorrect conclusions about the population. For audit sampling of tests of transactions this risk is known as:

• A) acceptable risk of assessing control risk too low.
• B) acceptable risk of assessing transaction testing as too low.
• C) risk that the sample is not representative of the population.
• D) risk that the sample conclusions cannot be useful because of non-probability sampling.

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined future date and price, commonly used for commodities or financial instruments.

Barack Obama

The 44th President of the United States, serving from 2009 to 2017, and the first African American to hold the office.

Presidential Election

A political event held in various countries where citizens vote to elect the President, the head of the executive branch of government.

Interest Rate Futures

Financial derivatives contracts that lock in the future delivery of an asset with an interest-bearing instrument at a specified price.