Sampling refers to testing some part of the entire population, based on some key features and symptoms, which can represent the entire sampling. This is a pre decided proportion of the population which is tested by the auditor. To choose: Select the False option among the given options for use of statistical or non-statistical sampling method with regards to effectiveness of audit evidence, quality of measurement etc.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 12CYBK

To determine

Introduction:Sampling refers to testing some part of the entire population, based on some key features and symptoms, which can represent the entire sampling. This is a pre decided proportion of the population which is tested by the auditor.

To choose: Select the False option among the given options for use of statistical or non-statistical sampling method with regards to effectiveness of audit evidence, quality of measurement etc.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which of the following statements is not true with respect to nonstatistical sampling?a. It cannot be used in an audit conducted in accordance with generally accepted auditing standards.b. It considers a number of factors in determining the appropriate sample size.c. When using it, an individual makes some estimate of the characteristic of interest.d. It requires the use of judgment on the part of the individual performing the sampling application.

It is important to recognize that audit sampling may be constructed on a nonstatistical basis.If the auditor uses statistical sampling, probability theory will be used to determine sample sizeand random selection methods to ensure each item or GHc1 in value of the population has thesame chance of selection. Non-statistical sampling is more subjective than statistical sampling,typically using haphazard selection methods and placing no reliance on probability theory.However, in certain circumstances statistical sampling techniques may be difficult to use. Theauditor will review the circumstances of each audit before deciding whether to use statisticalor non-statistical sampling a. Describe to what extent statistical sampling enhances the quality of the audit evidence.b. Explain how judgement is used in statistical and non-statistical sampling c. Explain what you understand by the following terms:(i) Random sampling(ii) Monetary unit sampling.

Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has the consequence that the auditor may assume that the population is free of material misstatement. B. The risk of incorrect rejection is called alpha risk and has the consequence that the auditor may assume on the basis of sample results that a population is materially misstated when, in fact, it is not . C. The risk of incorrect acceptance is called beta risk. D. The risk of incorrect rejection very common in audit sampling is called beta risk.