An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods:
A. can more easily convert the sample into a dual-purpose test useful for substantive testing.
B. provide an objective basis for quantitatively evaluating sample risks.
C. eliminate the need to use judgment in determining appropriate sample sizes.
D. afford greater assurance than a nonstatistical sample of equal size.
Answer: B
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a. Inventory losses can be identified and controlled better under the perpetual system. b. The perpetual system eliminates the need for an annual inventory count. c. There is no difference in cost to implement a perpetual as compared to a periodic system. d. Inventory can only be sold at the end of an accounting period under the periodic system.
When a leader feels an obligation to serve the interests of one or more stakeholder groups, he or she has ______.
a. a sense of responsibility b. a sense of accountability c. a sense of procedural justice d. courage
Petty theft is okay if "everybody is doing it."
Indicate whether the statement is true or false
Discuss the United Kingdom's Financial Services Authority (FSA)
What will be an ideal response?