Which of the Following Observations Is True About Discovery Sampling

question 24

Multiple Choice

Which of the following observations is true about discovery sampling?

• A)It is one of the more difficult statistical sampling variations to understand.
• B)Auditors using this method can always be certain that fraud does not exist in a population of checks.
• C)It allows an auditor to generalize and make inferences from the population to the sample.
• D)It deals with the probability of discovering at least one error in a given sample size if the population error rate is a certain percentage.

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, where no single participant has the power to significantly influence prices for homogeneous products.

Production Resource

Resources used in the creation of goods and services; these include land, labor, capital, and entrepreneurship.

Market Price

The present cost for purchasing or selling a product or service in a market setting.

Influence

Influence is the capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.