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Discuss the Two Circumstances Under Which Auditors Would Extend Their

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Essay

Discuss the two circumstances under which auditors would extend their procedures considerably in the audit of payroll.


Definitions:

Level of Confidence

The degree of certainty or trust one can have in the interval estimate of a population parameter.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the population parameter of interest with a specified probability.

Population Mean

The average value of all members of a population.

Standard Deviation

A numerical value calculating how much the dataset deviates from its average, illustrating the breadth of data distribution.

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