Explain the statement stated by an auditor "On every aspect of the audit where it is possible, I calculate the point estimate of the misstatements and evaluate whether the amount is material. If it is, I investigate the cause and continue to test the population until I determine whether there is a serious problem. The use of stratified sampling in this manner is a valuable audit tool.”

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Chapter 17, Problem 6RQ

To determine

Explain the statement stated by an auditor "On every aspect of the audit where it is possible, I calculate the point estimate of the misstatements and evaluate whether the amount is material. If it is, I investigate the cause and continue to test the population until I determine whether there is a serious problem. The use of stratified sampling in this manner is a valuable audit tool.”

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