Auditing True or False: 1. Audit sampling is the performance of a procedure on less than...

Auditing True or False:

1. Audit sampling is the performance of a procedure on less than 100% of the items in the

population to arrive at a conclusion about the population.

2. Non-statistical sampling should never be used.

3. When using probability-proportional-to-size sampling, each item in the population is given a probability of selection in proportion to its recorded amount.

4. In a computerized environment, there may be less documentation of transactions that have

occurred.

5. When utilizing an EDI system, source documents, such as invoices and purchase orders,

are replaced with electronic transactions.

6. A catalog sales firm utilizes a system in which, as sales orders are entered into their

computer, both inventory and credit are immediately checked. This is an example of EDI.

Solutions

Expert Solution

Answer -

No.	Particulars	*True / False*	Explanation
1.	Audit sampling is the performance of a procedure on less than 100% of the items in the population to arrive at a conclusion about the population.	True	-
2.	Non-statistical sampling should never be used.	False	Non-statistical sampling should never be used when the population size is very small.
3.	When using probability-proportional-to-size sampling, each item in the population is given a probability of selection in proportion to its recorded amount.	False	When using probability-proportional-to-size sampling, each item in the population is given a probability of selection in proportion to its size.
4.	In a computerized environment, there may be less documentation of transactions that have occurred.	True	-
5.	When utilizing an EDI system, source documents, such as invoices and purchase orders, are replaced with electronic transactions.	True	-
6.	A catalog sales firm utilizes a system in which, as sales orders are entered into their computer, both inventory and credit are immediately checked. This is an example of EDI.	False	This is an example of on-line real-time.

ekkarill92 answered 1 year ago

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