Purchase Solution

Statistical sampling versus non-statistical sampling

Not what you're looking for?

Ask Custom Question

1. Which is better, statistical sampling or non-statistical sampling? Why?
2. Should Generally Accepted Auditing Standards prescribe specific risk levels that auditors must use? Why or why not?
3. Which assertion is most important for fair presentation of financial statements?

Purchase this Solution

Solution Summary

Statistical sampling and non-statistical sampling are compared.

Solution Preview

1. Which is better, statistical sampling or non-statistical sampling? Why?
In some circumstances, statistical sampling is more appropriate than non-statistical (judgment) sampling. Before deciding whether to use statistical or judgmental sampling, the auditor must:
- Determine the audit objectives;
- Identify the population characteristics of interest; and
- State the degree of risk that is acceptable.

After making those determinations, it may be advisable to use statistical sampling if the auditor has a well-defined population and can easily access the necessary documentation.

The difference ...

Purchase this Solution


Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.