In Nonstatistical Sampling, Describe the Two Methods Auditors Use to Project

question 43

Essay

In nonstatistical sampling, describe the two methods auditors use to project sample results to the population. How does an auditor determine which method to use?

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Definitions:

Cashier's Checks

A check issued by a bank, drawn on its own funds rather than on one of its depositor's accounts, ensuring the availability of funds for the payee.

Certified Checks

Checks guaranteed by a bank, indicating that the signer had enough funds in their account to cover the amount at the time of certification.

Internal Control Policies

Procedures and protocols implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.