As part of the audit of sales,the auditor has used attribute sampling to select a sample of sales invoices.The auditor has examined the duplicate sales invoice to determine whether it was approved for credit.The client has a December year end.In October,the auditor conducted the interim audit and drew a sample of 40 items that covered the period from January to September.In order to be able to generalize to the sales population,the auditor should also
A)select sample items from the rest of the year.
B)increase the sample size in proportion to the total population size.
C)use statistical methods to calculate sampling risk.
D)use statistical methods to calculate nonsampling risk.

Question

Quizplus · Accepted Answer

In order to generalize the sample results to the entire sales population, the auditor should select sample items from the rest of the year to cover the entire sales cycle. The sample should be representative of the population, and selecting a sample that only covers a portion of the year may result in bias or incomplete representation. Therefore, the best choice is to select sample items from the remaining months to cover the entire year-end period. Option B is not necessary since the population size is not provided, and increasing the size of the sample does not necessarily improve the accuracy. Options C and D are irrelevant since they relate to sampling and nonsampling risks, which are not related to the current question.

As Part of the Audit of Sales,the Auditor Has Used