Sampling

Question 1

What are the 3 ways to select items for testing

Answer 1

Selecting all items in the population
Selecting specific items
Audit sampling

Question 2

When to select al items in the populations?

Answer 2

The population consists of a small number of large-value items.
There is a significant risk, and other means do not provide sufficient appropriate audit evidence.
The repetitive nature of a calculation or other process that is performed automatically by an information system makes a 100% examination cost-effective

Question 3

What is audit sampling?

Answer 3

application of audit procedures to less than 100% of items within a population and where each sampling unit has a chance of selection.
Designed to enable conclusions to be drawn about an entire population on the basis of testing a sample of the population.