Question

uestion Completion Status: the overnight shift, to determine the defect rates. The goods produced throughout the day are referred to as the population the two selected batches are the sample while Population, Sample) QUESTION 15 An auditor wants to determine the rate at which transactions may have been recorded incorrectly by the accountants of the firm he is auditing However, the client firm has processed thousands of transactions of different dollar amounts in the past year, and it is infeasible to examine all of them. He decides to select randomly ten transactions whose amount was under $100,000, another ten transactions whose amount was between $100,000 and $200,000, and continue with selecting ten transactions from each successively higher category until he has assembled 100 loans to analyze what is the POPULATION that the auditor is investigating? what kind of selection process did the auditor use? For the toolbar, press ALT+F10 (P or ALT+FN+F10 (Mac) T T T Arial3 3(12pt)T EE

Answer 1

The auditor as investigating the population of loans and any error incurred by the accountant in recording them.

Auditor is using stratified sampling . Stratified sampling is used to segregate the entire population into subgroups and a random selection from each of the subgroups is selected for review .In the present case auditor has made sub groups on the basis of monetary amount and he is collecting samples from those subgroups.