Audit Sampling Is Used in Conjunction with Many Audit Tests,and

question 4

Essay

Audit sampling is used in conjunction with many audit tests,and may be performed on a statistical or nonstatistical basis.
a.Define the term audit sampling.
b.List and explain two advantages of the use of statistical sampling as compared to nonstatistical sampling.

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Definitions:

Merchandise

Goods that are purchased, stored, and then sold by retailers or wholesalers, typically in the context of inventory for sale.

Cash Disbursements

Payments made by a business in cash, including expenses, debt payments, and distributions to shareholders.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Receivables

Debts that customers have towards a firm for items or services that have been received or employed, yet remain unpaid.