An auditor wants to determine the rate at which transactions may have been recorded incorrectly by...
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An auditor wants to determine the rate at which transactions may have been recorded incorrectly by the accountants of the firm he is auditing. However, the client firm has processed thousands of transactions of different dollar amounts in the past year, and it is infeasible to examine all of them. He decides to select randomly ten transactions whose amount was under $100,000, another ten transactions whose amount was between $100,000 and $200,000, and continue with selecting ten transactions from each successively higher category until he has assembled 100 loans to analyze. What is the POPULATION that the auditor is investigating? What kind of selection process did the auditor use? An auditor wants to determine the rate at which transactions may have been recorded incorrectly by the accountants of the firm he is auditing. However, the client firm has processed thousands of transactions of different dollar amounts in the past year, and it is infeasible to examine all of them. He decides to select randomly ten transactions whose amount was under $100,000, another ten transactions whose amount was between $100,000 and $200,000, and continue with selecting ten transactions from each successively higher category until he has assembled 100 loans to analyze. What is the POPULATION that the auditor is investigating? What kind of selection process did the auditor use?
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The question pertains to an auditor who is choosing a subset of transactions for analysis from a cli... View the full answer
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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