U point During the course of an audit the auditor gathers audit evidence that is...
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U point During the course of an audit the auditor gathers audit evidence that is sufficient and appropriate He will examine many different types of audit documents and make his opinion on each aspect of the audit examination being conducted The following are relevant and involve independent cases that present a set of situations that may or may not involve sampling The auditor of Central Bank limited is currently examining loan receivables on an assigned audit. The population of loans contains two strata One stratum is composed of 30 loans that are each greater than $18 million. The second stratum contains 50/50 loans that are less than $1 million. The auditor has decided to fest all loans greater than $1 million and 15 loans less than $1 million . An auditor has randomly selected 40 sales invoices to be examined for proper pricing of the goods purchased by the customer The prepaid insurance account is made up of three policies that total $65.000 The auditor has decided that this account is immaterial and decides that no policies will be examined Required: Indicate and discuss which situations involve audit sampling statistical or non statistical and why (10 marks)
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