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1. Explain why sampling is important in the auditing process

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1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why

2. Define inherent risk and explain how this applies to transaction cycles. Give an example of how flowcharting or control matrices could help identify and mitigate inherent risks

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1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why

Sampling is important in auditing because it provides the auditor with a basis on which to draw conclusions, based on the audit sample. When performed correctly and with a sample that is sufficient, the auditor can determine if either further sampling is warranted, or if the sample is sufficient based on the audit sampling results for the entire population that the sample is drawn from. Sampling is appropriate in various circumstances. A good example would be the auditor selecting ...

Solution Summary

1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why

2. Define inherent risk and explain how this applies to transaction cycles. Give an example of how flowcharting or control matrices could help identify and mitigate inherent risks

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