Describe the steps auditors use in attribute sampling (i.e., statistical) and discuss the activities that go on in each step and why they are important to the sampling process.? Use the following example to provide examples for your explanations.?
The context for this question is an auditor determining how many items to test from a population and how to test them.? Let me set a simple example to illustrate all the answers to question.? As the auditor, you have selected the following as a key control to test in the purchases and payment processes of the auditee.?
The auditee's accounting department staff are to compare every invoice received from vendors to packing slips and purchase orders to make sure the terms, quantities, and prices are the same before processing the invoice for payment.? The clerk that does the comparison is supposed to staple the documents (packing slip, purchase order, and invoice) together with the invoice on top and then initial the face of the invoice.
You cannot afford to review every invoice to make sure the purchase order and receiving reports are attached and that the accounting clerk initialed the invoice to insure that the comparison was done.? However, you are auditing the ending purchases balance and so every invoice is part of the population of invoices that make up the ending purchases balance.? Thus, you need to select a subset or sample of invoices to test.?
Determine objectives of the test.? Include a comment on the role audit objectives play in this step.
Define attributes and exception conditions.
Define the sampling unit
Determine sample size, which includes determining specifying the TER, ARO, and EPER.
Select sample items.? Also, differentiate between selection methods (i.e., random, systematic, and haphazard).?
Perform audit procedures
Generalize from the sample to the population.
Decide the acceptability of the population.
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.