Auditors Use Samples in Their Audit Testing

question 3

Multiple Choice

Auditors use samples in their audit testing. In which of the following situations is the use of sampling not appropriate

• A) When the population is homogenous
• B) When all items in the population have an equal chance of being selected
• C) When the population is very small and all the items are material
• D) When the population consists of a large number of transactions

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Definitions:

Debriefs

Meetings or discussions held after an event or activity to review what happened, what was learned, and how to improve in the future.

Transfer Experiences

Transfer experiences involve the application of skills, knowledge, or competencies gained in one context to different situations or environments.

Vertical Transfer

The process of applying knowledge or skills learned in one context to a different level, typically within an organizational hierarchy or educational structure.

Managerial Level

Pertains to individuals in an organization who are responsible for managing teams and making strategic decisions.