What Is Audit Sampling and What Are the Instances When

question 25

Essay

What is audit sampling and what are the instances when the auditor finds sampling appropriate?

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Definitions:

Activities

Activities refer to actions, tasks, or operations that are carried out by individuals or organizations, often aiming towards achieving specific goals or outcomes.

Direct Labor Efficiency Variance

A measure used in cost accounting to gauge the difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, used in the production of goods.

Standard Direct Labor Cost

The predetermined cost of labor directly involved in manufacturing a product, based on expected wage rates and labor efficiency.

Favorable

A term often used in budgeting and financial reporting to indicate results that are better than expected or budgeted.