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Question:
Part A
(i) Describe audit sampling. Why do auditors sample instead of examining every transaction?
(ii) List the four factors that enter into the sample size decisions.
Part B
(i) Briefly explain four benefits to top management of carrying out performance/operational reviews
(ii) List and describe briefly the phases through which a performance/operational review progresses.
Sales are shipped FOB shipping point with credit terms n/45. You have verified that the last shipping number used in 2009 was 261,336 and that numbers were used in numerical order.
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expalining the meaning of audit test data
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