following is a set of situations that may or may

Project Description:

following is a set of situations that may or may not involve sampling. _br_1. an auditor is examining loan receivables at a local bank. the population of loans contains two strata. one stratum is composed of 25 loans that are each greater than $1 million. the second stratum contains 450 loans that are less than $1 million. the auditor has decided to test all loans greater than $1 million and 15 loans less than $1 million._br_2. assume the same facts as number 1 except that the auditor decides to apply analytical procedures to the second strata of loans._br_3. an auditor has haphazardly selected 30 sales invoices to be examined for proper pricing of the goods purchased by the customer._br_4. the prepaid insurance account is made up of four policies that total $45,000. the audit has decided that this account is immaterial and decides that no policies will be examined. _br__br_required: _br_indicate which situations involve sampling and why._br__br_
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