<p><span style="color: #333333; font-family: 'Open Sans', sans-serif; font-size: 14px; background-color: #ffffff;">Define the following terms: audit sampling, population, population unit, and sample.</span></p>

Question

In: Finance

audit sampling, population, population unit, and sample

Define the following terms: audit sampling, population, population unit, and sample.

Expert Solution

Audit sampling is the examination of less than 100% of a population (usually of account balances such as accounts receivables, payables). Sampling is synonymous with testing. A population is the set of all the elements that constitute an account balance or class of transactions. Each of the elements is a population unit; and when an auditor selects a sample, each element is called a sampling unit. A sample is a set of sampling units.

Raffay answered 2 years ago

A sample that reflects the population accurately is called a Sampling Frame Population Representative Sample Sample...

A sample that reflects the population accurately is called a Sampling Frame Population Representative Sample Sample Bias If generalization to population is needed, which sampling method should be used? Random Sampling Quota Sampling Convenience Sampling Purposive Sampling involves assigning numbers to answers so that they can be grouped into categories Sampling Recording Coding Editing

Audit sampling involves applying an audit procedure to less than 100 percent of the population for...

Audit sampling involves applying an audit procedure to less than 100 percent of the population for the purpose of evaluating some characteristic of the population. The fact that an audit involves sampling is noted in the scope paragraph of the auditor’s report, which contains the phrase “An audit includes examining, on a test basis.” When an auditor uses sampling, an element of uncertainty enters into the auditor’s conclusions. Required: a) Explain why auditor’s still use sampling techniques despite the uncertainties...

Explaining the importance of the professional use of specialized audit tools (Attributes Sampling, Monetary Unit Sampling,...

Explaining the importance of the professional use of specialized audit tools (Attributes Sampling, Monetary Unit Sampling, and Data Analytics Tools).

Audit sampling involves applying an audit procedure to less than 100 percent of the population for the purpose of evaluating some characteristics of the population.

Audit sampling involves applying an audit procedure to less than 100 percent of the population forthe purpose of evaluating some characteristics of the population. The fact that an audit involvessampling is noted in the scope paragraph of the auditor’s report, which contains the phrase “Anaudit includes examining, on a test basis.” When an auditor uses sampling, an element ofuncertainty enters into the auditor’s conclusions.Required:a) Explain why auditor’s still use sampling techniques despite the uncertainties that areinherent in audit conclusions drawn...

AUDITING (a). Discuss the first stage of the audit sampling process, namely ' designing the sample'....

AUDITING (a). Discuss the first stage of the audit sampling process, namely ' designing the sample'. (b) Discuss the audit procedures to follow to audit capital expenditures. (c) Discuss the analytical review procedures for wages paid. (d) Discuss the essential elements to a good physical control over stock (e) Discuss the audit enquiry and tests for:  Raw materials;  Production; and  finished goods.

5) Explain the differences between the population distribution, the distribution of a sample, and a sampling...

5) Explain the differences between the population distribution, the distribution of a sample, and a sampling distribution. Describe each of these in a single context of your choosing.

Explain how a sample, a sampling distribution, and a population differ. What are the means and...

Explain how a sample, a sampling distribution, and a population differ. What are the means and standard deviation for each of these?

Explain the Concept of Audit Sampling ?

Edwards has decided to use monetary-unit sampling in the audit of an entity’s accounts receivable balance....

Edwards has decided to use monetary-unit sampling in the audit of an entity’s accounts receivable balance. Few, if any, misstatements of account balance overstatements are expected. (8 points) a. Calculate the sample size and the sampling interval Edwards should use for the following information: Tolerable misstatement = $15,000 Expected misstatement = $6,000 Desired confidence level = 95% Recorded amount of accounts receivable balance $300,000 b. Calculate the upper misstatement limit (UML) assuming that the following three misstatements were discovered in...

The results of sampling independent populations: sample 1 from population 1 • mean 1000 • sample...

The results of sampling independent populations: sample 1 from population 1 • mean 1000 • sample standard deviation 400 • sample size 50 sample 2 from population 2 • mean 1250 • sample standard deviation 400 • sample size 50 Test the HO: population 1 mean = population 2 mean at alpha = 0.01. HA: population 1 mean =/ population2 mean. This is a two-tailed test with both a negative lower critical value and a positive upper critical value. Separate...