Tests of controls to estimate the rate of deviations


Problem:

1) Can an audit be done without using sampling?

2) What is the benefit to using statistical vs. random sampling to the auditor?

3) What types of statistical sampling techniques used in auditing are attribute sampling and variables sampling?

Attribute sampling is used in tests of controls to estimate the rate of deviations from prescribed controls in a population. Variables sampling is used in substantive tests to estimate the total dollar amount of a population or the dollar amount of error in a population.

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Accounting Basics: Tests of controls to estimate the rate of deviations
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