A Supervisor was reviewing a particular case that was completed by an auditor and noticed that the sample selected by the auditor contained units that operated in only three of the twenty jurisdictions for which the licensee reported miles. After calling the auditor in to discuss the case, the following is the conversation between the Supervisor and the auditor:

Supervisor: The sample units you selected are not representative and therefore would not be in compliance with IFRS


Auditor: I selected my sample from the three different months all of which are representative months of operation for the entire audit period. The licensee agreed with the test sample and results of the audit.

Supervisor: I agree that the sample months you used to select your test sample vehicles appear to be representative months, but the actual test sample itself is not representative and therefore we will be in violation of the IFRS.

Auditor:
Not every return included twenty jurisdictions and the majority of miles traveled by the licensee were within the three jurisdictions included in my test sample. Since the sample periods were representative and since the majority of miles accrued by this licensee were tested, I believe that we are in compliance with the IFRS

Do you agree or disagree with the auditor’s statement? Why or why not?

Answer rating: 100% (QA)

I do agree with the auditors statement The sample selected by the auditor contained units that operated in only three of the twenty jurisdictions for ... View the full answer