Correct Answer:
C. Less than 100% of items in a population so that all sampling units have a chance of selection
Sampling allows conclusions about the whole population from a part of it.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Audit sampling means applying audit procedures to:
Related MCQs
Target costing computes the target cost as:
A.
Actual cost plus markup
B.
Target selling price minus desired profit
C.
Last year's cost plus inflation
D.
Variable cost only
Correct answer is:
B. Target selling price minus desired profit
Do you agree with this answer?
Performance-based (results-oriented) budgeting:
A.
Lists expenditure by input only
B.
Links funding to outputs and outcomes
C.
Ignores results
D.
Is prepared after the fiscal year
Correct answer is:
B. Links funding to outputs and outcomes
Do you agree with this answer?
Abnormal loss is:
A.
Loss that is part of normal operations
B.
Loss in excess of the normal loss, charged to the costing profit and loss account
C.
Added to the cost of good units
D.
Always recoverable from the supplier
Correct answer is:
B. Loss in excess of the normal loss, charged to the costing profit and loss account
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Audit working papers generally belong to:
A.
The client
B.
The auditor
C.
The shareholders
D.
The regulator in every case
Correct answer is:
B. The auditor
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The three categories of activities in a statement of cash flows are:
A.
Revenue, expenses and profit
B.
Operating, investing and financing
C.
Current, non-current and contingent
D.
Direct, indirect and mixed
Correct answer is:
B. Operating, investing and financing
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The present value of Rs. 11,000 to be received after 1 year at a discount rate of 10% is:
A.
Rs. 10,000
B.
Rs. 9,900
C.
Rs. 12,100
D.
Rs. 11,000
Correct answer is:
A. Rs. 10,000
Do you agree with this answer?
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