An auditor has taken a large sample from an audit population that is skewed in the sense that it contains a large number of small dollar balances.The auditor can conclude
A) the sampling distribution is not normal; therefore MUS sampling will more accurately define the nature of the population.
B) the sampling distribution is normal; therefore the confidence coefficient value can be used to evaluate the sample results.
C) the sampling distribution is not normal; thus attribute sampling is the only alternative statistical tool that can be appropriately used.
D) none of the other answers is correct.

Question

Quizplus · Accepted Answer

The fact that the audit population is skewed does not necessarily imply that the sampling distribution is not normal. As such, the auditor can still use the confidence coefficient value to evaluate the sample results. Additionally, MUS and attribute sampling may not be appropriate alternatives for this scenario.

An Auditor Has Taken a Large Sample from an Audit