Answered: Define discovery sampling. When is it…

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Accounting

Define discovery sampling. When is it typically used?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 5RQSC

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Question

Define discovery sampling. When is it typically used?

Expert Solution

Step 1: Definition

Discovery sampling:

Auditor uses the discovery sampling when the rate of occurrence of any item or activity is very low. Discovery sampling assesses the minimum one deviation or exception in the population.

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