Purchase Solution

Statistics, sampling and audits

Not what you're looking for?

Ask Custom Question

1) Can an audit be done without using sampling?

2) What is the benefit to using statistical vs. random sampling to the auditor?

3) What types of statistical sampling techniques used in auditing are attribute sampling and variables sampling?

Attribute sampling is used in tests of controls to estimate the rate of deviations from prescribed controls in a population. Variables sampling is used in substantive tests to estimate the total dollar amount of a population or the dollar amount of error in a population.

Purchase this Solution
Solution Summary

This solution discusses audit sampling, statistical sampling, random sampling, and related issues.

Solution Preview

1. An audit can be done without sampling, although it is rare. The purpose of sampling is to use a reliable method of testing so that the auditor does not have to test 100% of every population, for every account on the books. By using a sample, we can generate accurate audit evidence in a time-saving manner. If the client is a small company and ...

Purchase this Solution
Free BrainMass Quizzes
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.

Operations Management

This quiz tests a student's knowledge about Operations Management

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

SWOT

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

View More Free Quizzes
Related BrainMass Solutions

  • Medical Information & Audits

    I also attached two illustrative examples of chart audits, one using random sampling and the other convenience sampling methods. These examples are also referred to throughout this response. I hope this helps and take care.

  • Chart auditing

    You know that one component of chart audits is to determine what is to be audited and the criteria for that audit. Distinguish between doing random and convenience sampling and give an example for each type. Choose a quality improvement model.

  • Statistical sampling

    If different auditors complete an audit, statistical sampling allows these audits to be combined and evaluated together. Examples of statistical sampling: 1.

  • Penalty for Going to an Audit without a Sample Size

    across auditors and audits; and there is objective evaluation of results (Guy, Carmichael, and Whittington, 2001).

  • Attribute sampling and Variable sampling

    272137 Differences in Attribute sampling and variable sampling in Audits Auditing What are the differences between attribute sampling and variable sampling? Which of the sampling techniques would you prefer to use and why?

  • Risks with physically accounting for inventory

    List the risks that you see the auditor will face and how they would manage those risks. Business Sampling & Auditing Business Auditors are people or sometimes groups of people that conducts audits in an organization or any type of entity.

  • Description v inferential statistics

    328626 Description v inferential statistics; four sampling techniques, develop a hypothesis Review my ability to define and use the various vocabulary words associated with statistics.

  • Descriptive and Inferential Statistics

    135024 Descriptive and Inferential Statistics What are the main differences between descriptive and inferential statistics? Give examples of each. When would random sampling not be the best approach to sample selection? Give an example. 1.

  • Sampling methods, inferential statistics and coverage error

    292398 Statistics multiple choice: sampling methods, coverage error, statistical inference 1) What is the difference between probability sampling and simple random sampling? A. There is no difference. B.

View More Related Solutions