Which of the following best describes the distinguishing feature of statistical sampling?
A. It reduces the problems associated with the auditor's judgment concerning materiality.
B. It requires the examination of a smaller number of supporting documents.
C. It permits the auditor to use the most efficient sample size and to quantify the sampling risk to reach a statistical conclusion about the population.
D. It is evaluated in terms of two parameters: statistical mean and random selection.
Answer: C
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Which of the following statements is true?
a. If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. b. If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. c. Posting occurs when numbers in the general ledger accounts are transferred to the general journal. d. If the sum of the debit balances equals the sum of the credit balances then there were no mistakes made in the posting process.
Which of the following is NOT an aspect of the rational decision making model?
a. Define the problem and collect all the information that will lead to a solution b. Review the data and come up with a decision c. Discuss the decision with employees and together decide on the optimum solution d. Implement the decision from top-down and evaluate its effectiveness
As a sender of a message, it is important to consider the age and economic level of the receiver of the message
Indicate whether the statement is true or false
Confidence, warmth, enthusiasm, and patience are considered productive attitudes
Indicate whether the statement is true or false