After Planning the Sample, Selecting the Sample and Performing the Tests

question 21

Essay

After planning the sample, selecting the sample and performing the tests it is necessary to evaluate the results.This final stage requires the auditor to consider the qualitative aspects of the errors that were found and to project errors to the population and conclude on the audit test.Explain what is involved in these two final steps of sampling.

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Definitions:

Raw Materials Inventory

The total cost of all the raw materials that are currently held by a company in stock, awaiting to be used in production.

Gallons

A unit of volume used primarily in the United States for measuring liquids.

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting, cost control, and performance evaluation.

Cash Account

An accounting ledger that tracks the money a company spends (cash out) and receives (cash in).