CAS 530 has a very specific definition of sampling.Assuming that each item (described as a sampling unit)in the populations below could be selected as part of the sample,which of the following illustrates the other part of the CAS 530 definition of sampling?
A)looking at 50 sales invoices from the current population of 100 000
B)recalculating interest calculations for notes payable
C)estimating the gross profit by product for all company products
D)inspecting all legal invoices for potential contingent liabilities

Question

Quizplus · Accepted Answer

CAS 530 defines sampling as the application of audit procedures to less than 100% of items within a population of audit relevance, where each sampling unit has a chance of selection. This allows the auditor to make and evaluate audit conclusions about the entire population based on the sample. Option A is the only one that fits this definition, as it involves selecting a subset (50 sales invoices) from a larger population (100,000 sales invoices) to examine.

CAS 530 Has a Very Specific Definition of Sampling