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There Are 14 Steps to Audit Sampling for Details of Balances

question 65

Essay

There are 14 steps to audit sampling for details of balances, divided into three sections: plan the sample, select the sample and perform the audit procedures, and evaluate the results.Discuss each of the steps included in the "evaluate the results" section for nonstatistical sampling.


Definitions:

Equivalent Unit

A measure used in cost accounting to express the amount of work done on incomplete products in terms of completed products.

Weighted-Average Method

A cost accounting method that assigns the average cost of goods available for sale to both ending inventory and units sold.

Assembly Department

A department within a manufacturing facility where components are assembled into finished products.

Materials

The raw items or components used in the manufacturing process to produce goods or services.

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