The Use of Statistical Sampling Is Less Common for the Audit

question 61

True/False

The use of statistical sampling is less common for the audit of accounts payable than for accounts receivable because it is more difficult to define the population and determine the population size in accounts payable.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be used before it needs to be replaced or has significantly depreciated.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition, reducing its book value on the balance sheet.

Journal Entry

A record of a transaction in a business's accounts, noting the accounts affected and the amounts.

Depreciation

The process of methodically allocating the expense of a physical asset over its functional life.