What are the major differences between (a) audit sampling for tests of controls and substantive tests of transactions and (b) audit sampling for tests of details of balances?
Define stratified sampling and explain its importance in auditing.
How can an auditor obtain a stratified sample of 30 items from each of three strata in the confirmation of accounts receivable?
How does stratifying an account balance population for sampling differ from using data analytics to audit the entire balance?
What is the relationship between ARIA for tests of details of balances and ARO for tests of controls?
Distinguish between the point estimate of the total misstatements and the true value of the misstatements in the population. How can each be determined?
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