Auditors base their statistical inferences on sampling distributions.

Question

Quizplus · Accepted Answer

Auditors use statistical sampling to select a sample of transactions from an entire population of transactions. The sample is used to make inferences about the entire population. Based on the sample, auditors construct a sampling distribution, which is used to estimate the range of possible values for the population parameter of interest (e.g. the error rate in a population of transactions).

Auditors Base Their Statistical Inferences on Sampling Distributions