When Conducting an Audit, Statistical Sampling Involves

question 34

Multiple Choice

When conducting an audit, statistical sampling involves

• A) random selection and probability to evaluate results
• B) calculated selections and probability to evaluate results
• C) less staff and training, and is less costly than other sampling
• D) allows the auditor to select a sample they believe appropriate

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Definitions:

Directly Related

A term indicating a direct connection or correlation between two elements, where changes in one directly affect the other.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to allocate manufacturing overhead costs to products.

Support Department

Units within an organization that provide essential services or support to the production departments but do not directly engage in primary operations.

Service Departments

Units within a business not directly involved in primary operations but support other departments, e.g., HR and IT.