Understand how to use sequential sampling,discovery sampling, and nonstatisticalsampling in attributes testing.

Q: Identify the two situations in which samplingis used in an audit.

A: Audit Sampling: Audit sampling refers as an audit technique where audit procedures are applied to a…

Q: When is Attribute sampling used?

A: Attributes sampling is a statistical sampling method used to estimate the rate of control procedure…

Q: Define variables sampling and understandwhen it is used in the audit.

A: Variable sampling is a sampling process used by auditors to enumerate the value of a specific…

Q: What information does the audit team typically document in an attributes sampling application?

A: Sampling: Sampling allows an individual obtain the information about the population of interest in…

Q: What are the characteristics of Non-Statistical Sampling?

A: Non statistical sampling is a sampling method which is not based on the principles of statistics.…

Q: What is Sampling Risk?

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Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: Understand how various factors influencethe size of an attributes sample and how todetermine the…

A: Audit Sampling is a process in which an audit is done based on various samples collected or…

Q: What factors are considered in determining the sample size in a nonstatistical samplingapplication?

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Q: Define the terms precision (allowance for sampling risk), reliability (confidence), and…

A: Precision (allowance for sampling risk) is a measure of the difference between a sampling projection…

Q: How will you collect, classify and present statistical data?

A: For statistical analysis, there are several methods used to gather or collect data. Three of the…

Q: What functions are used in conjunction with Classic Variable Sampling?

A: Classic variable sampling is a testing for a dollar amount. In this sampling, value in sample gives…

Q: How is sampling risk controlled?

A: Sampling: Sampling allows an individual obtain the information about the population of interest in…

Q: What is the connection between audit sampling and audit data mining?

A: Audit sampling is the method in which audit procedure are performed on less than 100% data. In…

Q: What is Systematic Sampling?

A: Systematic sampling is process to select the products in random way but in a periodically manner.

Q: Explain the following audit sample selection 1. Random selection 2. Systematic selection  3.…

A: Audit sampling: It is referred to the application of audit procedures to less than a hundred percent…

Q: Distinguish between the terms sampling risk and nonsampling risk.

A: Introduction: The risk of sampling is that the conclusion based on a sample may differ from the…

Q: What type of sampling are Control Tests?

A: Control test are done to ensure that the design and the implementation of controls is accurate and…

Q: What is sequential sampling? What are its advantages and disadvantages?

A: In this type of sampling, sequence of sample is taken from a group.In this method of sampling,…

Q: An advantage of statistical sampling over nonstatistical sampling methods is that statistical…

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Q: A type of sampling application in which a relatively small initial sample is examined anddecisions…

A: Attributes sampling: Attributes sampling helps the auditor to assess a specific rate of occurrence…

Q: What factors affect sample size?

A: Definition:   Sampling: Sampling allows an individual to obtain information about the population of…

Q: What are the characteristics of Probability Proportionate to Size (PPS) sampling?

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Q: Define monetary unit sampling and explain its importance inauditing. How does it combine the…

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Q: What is Sequential Sampling?

A: Sequential sampling: It is the sampling plan at which the initial sample is selected and the audit…

Q: Make an Internal Rate of Return sample problem with a diagram and solution.

A: The IRR can be called the discount rate, it is applicable to the cash flows of the project and…

Q: Which of the following would be designed to estimate a numerical measurement of a population, such…

A: Monetary value is the value which will be received by a seller when the seller sells goods or…

Q: What is Discovery Sampling?

A: Discovery sampling can be used by the audit team as follows: Go to the AICPA sampling tables…