20. While auditors may use either statistical or nonstatistical sampling, some auditors restrict the use of...
20. While auditors may use either statistical or nonstatistical sampling, some auditors restrict the use of nonstatistical sampling for what reason?
a. It is less effective.
b. It is less objective.
c. It is less efficient.
d. It is less risky
Homework Answers
Statistical sampling does not leave room for a non-biased or non-objective evaluation, but nonstatistical sampling can be biased, so the answer is-
b. It is less objective.
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20. While auditors may use either statistical or nonstatistical
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5
The auditors of Landi Corporation wish to use a structured approach to nonstatistical sampling to evaluate the ndihas 12,400 receivable accounts with a total book value of $2,665,000 The auditors have assessed the combined level of inherent and control risk at a moderate level and believe that their other substantive procedures are so limited as to require a "maximum" risk assessment. After considering the overall audit plan, the auditors believe that the test's tolerable misstatement is $61.295. Use Fiqure...
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The auditors of Landi Corporation wish to use a structured approach to nonstatistical sampling to evaluate the ndihas 12,400 receivable accounts with a total book value of $2,665,000 The auditors have assessed the combined level of inherent and control risk at a moderate level and believe that their other substantive procedures are so limited as to require a "maximum" risk assessment. After considering the overall audit plan, the auditors believe that the test's tolerable misstatement is $61.295. Use Fiqure...
a. Attributes Sampling nonstatistical Stratificatio Samplin Allowanc e for sampling ri signed & liquid assets h safe Company compensatio n balance deposit box 11. Inherent in the use of sampling is risk which is the possibility of selecting a sample that is not representative of the population 12. When the auditors estimated sampling risk using professional judgement rather than by using the laws of probability, they are said to be using sampling 13. The term _refers to the process of...
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