Multiple Choice
Which of the following courses of action is an auditor most likely to follow in designing a sampling plan for cash disbursements if the auditor is aware of several unusually large cash disbursements?
A) Increase the sample size to reduce the effect of the unusually large disbursements.
B) Continue to draw new samples until all the unusually large disbursements are included in the sample.
C) Set the tolerable deviation rate at a lower level than originally planned.
D) Stratify the cash disbursements population so that all of the unusually large disbursements are selected.
Correct Answer:
Verified
Correct Answer:
Verified
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