Question

In: Accounting

The CAE of HVR Company has asked you to explain the fundamental differences between statistical and...

The CAE of HVR Company has asked you to explain the fundamental differences between statistical and non-statistical sampling in a manner that will help him make an informed decision about the nature of the sampling training that his internal audit staff needs. Explain to the CAE how the two sampling approaches differ with respect to: Sample size determination Sample selection Evaluating sample results

Solutions

Expert Solution

Differences between Statistical and Non-Statistical sampling

Statistical Sampling Non-Statistical Sampling
Statistical Sampling means-testing less than 100% of the items in the population for some characteristics and then drawing a conclusion about that characteristic for the entire population. Non-statistical sampling is the selection of a test group that is based on the examiner's judgment, rather than a formal statistical method.
It involves the use of mathematical laws of probability in determining the appropriate sample size. It involves the use of personal experience and knowledge of the auditor in determining sample size and its composition.
This approach is more scientific. This approach is neither objective nor scientific.
The sample results are measurable as to the adequacy and reliability of the audit objectives. Auditor's opinion determines the sample size but it cannot be measured how far the sample size would fulfill the audit objectives.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Explain the fundamental accounting differences between using the pooling of interest’s method versus the purchase of...
Explain the fundamental accounting differences between using the pooling of interest’s method versus the purchase of assets methods when dealing with the merger of two sport organizations.
Explain the fundamental accounting differences between using the pooling of interest’s method versus the purchase of...
Explain the fundamental accounting differences between using the pooling of interest’s method versus the purchase of assets methods when dealing with the merger of two sport organizations.
You have been asked to study whether there is a statistical relationship between the region of...
You have been asked to study whether there is a statistical relationship between the region of the country and the categorical number of stores that have experienced at least a 20% return rate of the item you are studying. Sample data concerning these two variables is given in appendix three. At both the 5% and 2% levels of significance, is there evidence of a relationship between the region of the country and the categorical number of stores that have experienced...
Discuss the fundamental differences between the Classical and Keynesian schools of macroeconomics. Use these differences to...
Discuss the fundamental differences between the Classical and Keynesian schools of macroeconomics. Use these differences to motivate a discussion of how inflationary and recessionary gaps can be eliminated through the use of discretionary fiscal policy. Use a graphical analysis and conclude by considering the long-run ramifications of adopting a fiscal budget that is sensitive to movements in the business cycle.
3) You have been asked to study whether there is a statistical relationship between the region...
3) You have been asked to study whether there is a statistical relationship between the region of the country and the categorical number of stores that have experienced at least a 20% return rate of the item you are studying. Sample data concerning these two variables is given in appendix three. At both the 5% and 2% levels of significance, is there evidence of a relationship between the region of the country and the categorical number of stores that have...
What are the fundamental differences between the styles of Greenspan and Bernanke and Yellen as chairs...
What are the fundamental differences between the styles of Greenspan and Bernanke and Yellen as chairs of the Fed? Short answer
Explain Bayesian statistics and Frequentist statistics. Define each statistical methodology, state the differences between the two,...
Explain Bayesian statistics and Frequentist statistics. Define each statistical methodology, state the differences between the two, state the similarities between the two, and then explain which approach you would prefer when faced with a statistical problem and why.
(a) differentiate between parametric and non parametric statistical data.give one example each (b) explain the differences...
(a) differentiate between parametric and non parametric statistical data.give one example each (b) explain the differences between scientific research and common sense; the four ways of attaining knowledge (c) what do you consider the factors that hinder research efforts in West Africa. (d) enumerate the advantage and disadvantage of secondary data
Define and explain the similarities & differences between statistical significance and PRE. Please provide examples.(Type answer)....
Define and explain the similarities & differences between statistical significance and PRE. Please provide examples.(Type answer). Please type out answer
the major differences between macroeconomics and microeconomics. Explain which of the two that you feel has...
the major differences between macroeconomics and microeconomics. Explain which of the two that you feel has most significantly broadened your understanding of the American economy overall, and which you feel has the most relevance to your individual goals. Refer to two or three the theories, concepts, terms, or models we have studied that you can apply in your daily life.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT