What is statistical sampling? How does it differ from nonstatistical sampling?

Q: What are the characteristics of Statistical Sampling?

A: Sampling: Sampling refers to testing some part of the entire population, based on some key features…

Q: A principal advantage of statistical methods of attribute sampling over nonstatistical methods is…

A: D. Sample Size

Q: When is Attribute sampling used?

A: Attributes sampling is a statistical sampling method used to estimate the rate of control procedure…

Q: What is Sampling Risk?

A:

Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: State the relationship between the following:a. ARO and sample sizeb. Population size and sample…

A:

Q: Monetary Unit and Classical Variables Sampling. Indicate whether each of the following…

A: Definition:

Q: What is Attribute Sampling?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: In which step of a sampling plan is nonstatistical sampling different from statistical sampling?a.…

A:

Q: Summarize the concept behind monetary-unit sampling (MUS). How does MUS use attribute-sampling…

A: As per ISA 530, "Audit Sampling" can be defined as application of audit procedure to less than 100%…

Q: In stratified random sampling, the population is first divided up into mutually exclusive and…

A: True, In stratified random sampling, the population is first divided up into mutually exclusive and…

Q: How does Block Sampling compare to other sampling methods?

A: Block sampling is a sampling technique in auditing. Under this method, a series of items is selected…

Q: What functions are used in conjunction with Classic Variable Sampling?

A: Classic variable sampling is a testing for a dollar amount. In this sampling, value in sample gives…

Q: Stratification of the population generally results in a more efficient sampling plan.   TRUE OR…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Statistical sampling cannot be used to test all control activities. TRUE OR FALSE? WHY?

A: Solution : Concept Statistical sampling               In an audit two methods of sampling can be…

Q: How does Probability Proportionate to Size (PPS) sampling compare to Classic Variables sampling?

A: Probability Proportionate to Size ( PPS):  This is a form of variable sampling. It does not use…

Q: How does Sampling Risk compare to Non-Sampling Risk?

A: Risk:   It is a probability of the financial statements being materially incorrect even though the…

Q: What is the formula for Audit Sampling?

A: Audit sampling is selecting some part of population , subjecting it to some audit procedures and…

Q: What is Systematic Sampling?

A: Systematic sampling is process to select the products in random way but in a periodically manner.

Q: What is Audit Sampling?

A: Audit sampling is the use of an audit procedure which says that selection of some sample items from…

Q: What is the meaning of “statistically significant” in relation to the null hypothesis?

A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…

Q: What type of sampling are Control Tests?

A: Control test are done to ensure that the design and the implementation of controls is accurate and…

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: What is sequential sampling? What are its advantages and disadvantages?

A: In this type of sampling, sequence of sample is taken from a group.In this method of sampling,…

Q: Probability samples versus nonprobability samples; also briefly define the types of valid…

A: Solution- Probability sampling- 1- probability sampling, respondents are randomly selected to take…

Q: The interpretation of the ULRD in an attributes sampling application isa. The estimated rate of…

A: The interpretation of the ULRD in an attributes sampling application is the estimated rate of…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

Q: A type of sampling application in which a relatively small initial sample is examined anddecisions…

A: Attributes sampling: Attributes sampling helps the auditor to assess a specific rate of occurrence…

Q: Which of the following best describes the method of determining the ULRD?a. Expected population…

A: Upper Limit Rate of Deviation (ULRD): It is a statistical measure used by the audit team to adjust…

Q: What are the characteristics of Probability Proportionate to Size (PPS) sampling?

A:

Q: Define monetary unit sampling and explain its importance inauditing. How does it combine the…

A:

Q: What is Sequential Sampling?

A: Sequential sampling: It is the sampling plan at which the initial sample is selected and the audit…

Q: Which of the following would be designed to estimate a numerical measurement of a population, such…

A: Monetary value is the value which will be received by a seller when the seller sells goods or…

Q: Which of the following pairs of selection methods could appropriately be used in statistical…

A:

Q: Understand how to use sequential sampling,discovery sampling, and nonstatisticalsampling in…

A:

Q: What is Discovery Sampling?

A: Discovery sampling can be used by the audit team as follows: Go to the AICPA sampling tables…

Q: Identify differences between the determination of sample size under classical variables samplingand…

A: Financial unit inspecting (MUS) is a factual examining strategy that is utilized to decide whether…

Q: What alternative courses of action are appropriate when a population is rejected using…

A: Test of Details of Balances: The test of details of balances is expected to show that the trial of…