Sampling Is Not Required When

question 59

Multiple Choice

Sampling is not required when

• A) it is the first year that the auditor has done the audit for a client.
• B) the auditor is conducting tests of controls.
• C) an audit procedure is conducted on an entire group of transactions.
• D) the client requests the auditor not to collect samples of certain transactions.

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Definitions:

Invoice

A document issued by a seller to a buyer, detailing products or services provided, prices, and payment terms.

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the total revenue.

Net Profit

The amount of money remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.