Auditors Who Prefer Statistical to Nonstatistical Sampling Believe That the Principal

question 53

Multiple Choice

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its ability to

• A) quantify sampling risk.
• B) promote a more legally defensible procedural approach.
• C) define the precision required to provide audit satisfaction.
• D) establish conclusive audit evidence with decreased audit effort.

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Definitions:

Probability

A scoring system that rates the probability of an event from 0 (not occurring) to 1 (certainly occurring).

Graduates

Individuals who have completed the requirements of their course of study at an educational institution.

Written Application

A formal request, often in writing, for something such as a job, place in university, or permission to do something.

First Interview

The initial meeting between a job applicant and an employer, often used to assess the candidate's suitability for a position.