Non-statistical sampling is commonly used in audit practice. Describe each of the four items required in a non-statistical audit test. Discuss the reasons why you would use, or not use, this type of testing for account transactions whose values range from very material to immaterial amounts. Describe why you believe non-statistical sampling is best for material vs immaterial amount testing, or vice versa.
Non-statistical sampling is commonly used in audit practice. Describe each of the four items required in a non-statistical audit test. Discuss the reasons why you would use, or not use, this type of testing for account transactions whose values range from very material to immaterial amounts. Describe why you believe non-statistical sampling is best for material vs immaterial amount testing, or vice versa.
Audit sampling is a method of investigation in which a sample of less than 100% of the total items in a population of things is chosen to be audited. It's a method of auditing that allows auditors to issue audit opinions without having to examine every single item and transaction. The auditing process entails the review and verification of a company's financial data. Its goal is to ensure that the financial transactions recorded on the books are accurate and fair. Because financial statements are produced internally by firms and organizations, there is a significant risk of fraud and manipulation.
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