A)Describe the Differences Between Statistical and Nonstatistical Sampling in Terms

question 56

Essay

A)Describe the differences between statistical and nonstatistical sampling in terms of 1)the sample selection methods used,and 2)measurement (quantification)of sampling risk.B)Describe each of the three types of sample selection methods commonly associated with nonstatistical audit sampling.C)Directed sample selection is the selection of each item in the sample based on some judgment criteria established by the auditor.Describe three commonly used criteria.

---

Definitions:

Cost of Goods Available

The total cost of inventory that is available for sale during a given period.

Net Operating Income

The earnings from a company's core business operations, indicating the efficiency in managing its operational costs.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right, to track the balance of each account.

Manufacturing Overhead

The indirect costs associated with manufacturing, covering expenses like maintenance, utilities, and staff salaries not directly involved in production.