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Problem 1: Sampling is a method of obtaining information that will permit an estimate of the value or quality of a population by examining only a portion of the population. Which of the following statements is false?
Option 1: Auditors will sample to achieve reasonable assurance.
Option 2: When sampling, auditors will always consider costs vs. benefits.
Option 3: Sampling will never be able to provide absolute assurance.
Option 4: Auditors will always sample to keep overall costs of performing the audit reasonable.
Problem 2: Non-sampling risk arises whenever an auditor
Option 1: does not use sampling.
Option 2: uses an inappropriate audit procedure.
Option 3: examines too many items in a population.
Option 4: does not examine all of the items in population.
Determine the amounts of the buildings and the land that XYZ will record on its books related to the lump-sum purchase
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