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The auditor has identified that, due to the way in which inventory is stored in the warehouse, the inherent...

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The auditor has identified that, due to the way in which inventory is stored in the warehouse, the inherent risk of accuracy valuation and allocation of inventory is high. There are no controls to rely on, so the auditor assesses control risk to be high. John, an audit colleague, has been asked to take a sample of 120 inventory items to test for accuracy, valuation and allocation. He selects the sample using systematic selection. Required Briefly explain to John why his approach to selecting the sample is incorrect.

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John s approach to selecting the sample using systematic selection is View the full answer


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Related Book For  answer-question
Auditing and Assurance services an integrated approach

Auditing and Assurance services an integrated approach

ISBN: 978-0133125689

15th edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

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Posted Date: March 10, 2023 02:13:31
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