During the audit of the fixed asset section,the auditor decided to inspect source documents supporting all fixed asset additions exceeding $3000.This type of audit procedure is called a
A)census of the strata over $3000.
B)analytical review.
C)attribute sample.
D)monetary unit sample.

Question

Quizplus · Accepted Answer

This procedure is called a census of the strata over $3000 because the auditor is examining all transactions (or items) that exceed a certain threshold (in this case, $3000), rather than selecting a sample. This approach is used to focus on higher-value transactions that are more likely to have a significant impact on the financial statements.

During the Audit of the Fixed Asset Section,the Auditor Decided