If an auditor believes that errors exist in a set of items and wants to estimate the magnitude of errors based only on a sample,the auditor will use the method of difference estimation.

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The method of difference estimation is commonly used when an auditor wants to estimate the magnitude of errors in a population based on a sample. This involves comparing the values of two different variables to determine the difference, and then extrapolating that difference to the population as a whole.

If an Auditor Believes That Errors Exist in a Set