Discuss the nature of sampling risk and nonsampling risk

Assignment Help Taxation

Reference no: EM133206766

Assignment - Auditing Discussion - Audit sampling involves applying an audit procedure to less than 100 percent of the population for the purpose of evaluating some characteristic of the population. The fact that an audit involves sampling is noted in the scope paragraph of the auditor's report, which contains the phrase "An audit includes examining, on a test basis." When an auditor uses sampling, an element of uncertainty enters into the auditor's conclusions.

1. Explain the auditor's justification for accepting the uncertainties that are inherent in the sampling process.

2. Discuss the uncertainties that collectively embody the concept of audit risk.

3. Discuss the nature of sampling risk and nonsampling risk. Include the effect of sampling risk on tests of controls.

Reference no: EM133206766

Questions Cloud

Discuss how the cost of capital encourages a firm : FIN/370T Finance for Business Assignment - Cost of Capital Discussion, University of Phoenix - Discuss how the cost of capital encourages a firm

Research international servant leadership : LDR 630-Grand Canyon University-Research an international servant leader or international servant leadership organization.

Create a swot analysis for the chosen company : Create a SWOT analysis for the chosen company. List 2-3 strengths, weaknesses, opportunities, and threats. Write a paragraph supporting your choices.

What considerations affect a decision to migrate : What considerations affect a decision to migrate? What is place utility and how does its perception induce or inhibit migration?

Discuss the nature of sampling risk and nonsampling risk : Discuss the nature of sampling risk and nonsampling risk. Include the effect of sampling risk on tests of controls

Importance of understanding the audience : University of South Florida-Prepare and submit a brief written document explaining your understanding of the importance of understanding the audience,

Discuss a topic relevant to cell and evolutionary biology : The article must discuss a topic relevant to Cell, Molecular, and Evolutionary Biology. That gives you a lot of leeway.

Empires Development : To what regions did each empire expand between 1500 and 1700? How did each govern their expanded empire?

Describe leadership characteristics of managerial accounting : Describe how you would respond to this situation. In your response, describe leadership characteristics of the managerial accounting profession

User Account

All Pages