Jill works for an auditing firm that is auditing AHD Ltd. Jill selected a random sample of payroll transactions for January 2017 and May 2017 and traced each sample item back to the personnel records to verify that the employee being paid was a legitimate employee of the client. Based on his review of the sample items, Jill concluded that the controls for that assertion could be relied on in the audit.
a. Identify the population in this case.
b. Briefly explain sampling error and give an example of how James' conclusion could be incorrect due to sampling error.
c. Briefly explain non-sampling error and give an example of how James' conclusion could be incorrect due to non-sampling error.