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Jill works for an auditing firm that is auditing AHD Ltd. Jill selected a random sample of payroll transactions for December 2013 and January 2014 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.
Required
Problem a. Identify the population in this case.
Problem b. Briefly explain sampling error and give an example of how Jill's conclusion could be incorrect due to sampling error.
Problem c. Briefly explain non-sampling error and give an example of how Jill's conclusion could be incorrect due to non-sampling error.
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