If an Auditor, Planning to Use Statistical Sampling, Is Concerned

question 74

Multiple Choice

If an auditor, planning to use statistical sampling, is concerned with the dollar value of mathematical errors in sales invoices, the auditor would most likely NOT utilise:

• A) sampling for attributes.
• B) sampling for variables.
• C) stratified random sampling.
• D) random sampling.

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Definitions:

Traditional Format

In financial accounting, this refers to the conventional structure of financial statements that include the balance sheet, income statement, and statement of cash flows.

Debit Memo

A document issued to correct or adjust amounts in previously issued invoices.

Decreases Asset

Transactions or events that result in a reduction of the value or quantity of the assets owned by a company.

Credit Memo

A credit memo is a document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the original sales contract, often issued for returned goods or for a pricing discrepancy.