What are the advantages of sampling items in a population instead of testing every item? (Several choices may be correct.)It is impossible to arrive at the wrong conclusionIncreases the cost of the auditAllows auditor to project results to the whole populationReduces the time required for testing

Answered: What are the advantages of sampling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

What are the advantages of sampling items in a population instead of testing every item? (Several choices may be correct.)
It is impossible to arrive at the wrong conclusion
Increases the cost of the audit
Allows auditor to project results to the whole population
Reduces the time required for testing

Expert Solution

Step 1: Audit Sampling concept

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class which is very important to cover vast audit samples.Audit sampling is needed when population sizes are large, since examining the entire population would be highly inefficient.

Sampling allows the auditors to give results of the entire population in very less time and hence reduces time and labor makes it easy to sample each and every individual in a population.

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions