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An Auditor Uses Sampling to Determine the Reasonableness of an Account

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An auditor uses sampling to determine the reasonableness of an account balance by performing detailed analysis of items making up the account balance.


Definitions:

Population Parameters

Characteristics or measures that describe aspects of a statistical population, such as mean, variance, or standard deviation.

Proposed Package

A suggested set of measures, items, or conditions put forward for consideration or acceptance.

Percentage

A proportion or share expressed as a fraction of 100.

Inferential Statistics

The branch of statistics that allows making predictions or inferences about a population based on a sample of data drawn from that population.

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