Nonprobabilistic Selection Methods Are Not Based on Mathematical Probabilities; Therefore

question 45

Multiple Choice

Nonprobabilistic selection methods are not based on mathematical probabilities; therefore:

• A)the extent to which a sample is representative of the population may be difficult to determine.
• B)they are discouraged by the AICPA.
• C)they are not allowed by the Statements on Auditing Standards.
• D)they are not as effective as statistical sampling.

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Definitions:

Unethical Behaviors

Actions that do not conform to acceptable standards of morality or the ethical codes of a particular profession.

Executive Pay

Compensation provided to top-tier management and executives of a company, which may include salary, bonuses, stocks, and other benefits.

Pension Benefit Guarantee Corporation

A federal agency that protects the retirement incomes of American workers in private-sector defined benefit pension plans.

T-statistic

A value derived from the t-test, used to determine if there is a significant difference between the means of two groups being compared.