Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jessie and Susan are working on the audit of Parker LLC, a medium-sized firm and distributor of cotton products throughout the continental United States. Jessie

Jessie and Susan are working on the audit of Parker LLC, a medium-sized firm and distributor of cotton products throughout the continental United States. Jessie has just finished explaining why auditors obtain samples rather than test entire populations to Susan. Susan replies that although she understands, it would seem safer for the auditor just to test the entire population in order to be able to offer a higher level of assurance. Which of the following represents Jessie's best response to this? Auditors only obtain and test samples because statistical theory holds that if the auditor obtains a sample size of at least ten percent of the population, the conclusions reached will be the same either way. Auditors obtain and test a sample instead of the entire population because it would take too much time and be too expensive for the auditor to test the populations of all accounts. The auditors tend to test samples more so than populations because the internal audit function routinely tests populations throughout the year. None of the choices is correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Business Mathematics In Canada

Authors: F. Ernest Jerome, Jackie Shemko

3rd Edition

1259370151, 978-1259370151

More Books

Students also viewed these Mathematics questions