what is the primary objective of using stratification as a sampling method in auditing?
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What is the primary objective of using stratification as a sampling method in auditing? a. To increase the confidence level at which a decision will be reached from the results of the sample selected.
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['It helps the auditor obtain sufficient appropriate evidence for the circumstances.', 'It helps to keep audit costs at a reasonable level.', 'It helps to avoid misunderstandings with the client.', 'It helps to ensure that potential problems are promptly identified.']
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To a publicly traded company, the financial statement audit offers credibility. ... The fundamental purpose of the audit is to provide independent assurance that management has, in its financial statements, presented a “true and fair” view of a company's financial performance and position.
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The main types of probability sampling methods are simple random sampling, stratified sampling, cluster sampling, multistage sampling, and systematic random sampling.
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In stratified sampling, the sampling is done on elements within each stratum. In stratified sampling, a random sample is drawn from each of the strata, whereas in cluster sampling only the selected clusters are sampled. A common motivation of cluster sampling is to reduce costs by increasing sampling efficiency.
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The census is a systematic method that collects and records the data about the members of the population. The sampling is defined as the subset of the population selected to represent the entire group, in all its characteristics. The census is alternately known as a complete enumeration survey method.
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There are five types of sampling: Random, Systematic, Convenience, Cluster, and Stratified. Random sampling is analogous to putting everyone's name into a hat and drawing out several names. Each element in the population has an equal chance of occuring. ... Systematic sampling is easier to do than random sampling.
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Probability sampling is a sampling technique, in which the subjects of the population get an equal opportunity to be selected as a representative sample. Nonprobability sampling is a method of sampling wherein, it is not known that which individual from the population will be selected as a sample.
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['Higher complexity compared to non-probability sampling.', 'More time consuming.', 'Usually more expensive than non-probability sampling.']
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The main difference between stratified sampling and quota sampling is that stratified sampling would select the students using a probability sampling method such as simple random sampling or systematic sampling. In quota sampling, no such technique is used.
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['Defining the target population.', 'Specifying the sampling frame.', 'Specifying the sampling unit.', 'Selection of the sampling method.', 'Determination of sample size.', 'Specifying the sampling plan.', 'Selecting the sample.']
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A study of the auditing profession, audit process, and other assurance and nonassurance services related to the CPA profession. ... Various techniques are used to study auditing concepts and practices; these may include the use of problem sets, case studies, computer applications, and other materials.
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A sample design is made up of two elements. Sampling method. Sampling method refers to the rules and procedures by which some elements of the population are included in the sample. Some common sampling methods are simple random sampling , stratified sampling , and cluster sampling .
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Unlike the various sampling techniques that can be used under probability sampling (e.g., simple random sampling, stratified random sampling, etc.), the goal of purposive sampling is not to randomly select units from a population to create a sample with the intention of making generalisations (i.e., statistical ...
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Some other Quantitative techniques such as sampling theory helps in taking decision for whole universe on the basis of sample. In business estimation future planning, regression, correlation, variance analysis, index numbers and time series analysis are very useful Quantitative techniques.
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['Step 1: Define Audit Objectives. ... ', 'Step 2: Audit Announcement. ... ', 'Step 3: Audit Entrance Meeting. ... ', 'Step 4: Fieldwork. ... ', 'Risk Issue Levels: During the course of audit work performed, identified risks are rated as High, Moderate or Low. ... ', 'Step 5: Reviewing and Communicating Results. ... ', 'Step 6: Audit Exit Meeting. ... ', 'Step 7: Audit Report.']
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With stratified sampling, the sample includes elements from each stratum. With cluster sampling, in contrast, the sample includes elements only from sampled clusters. Multistage sampling. With multistage sampling, we select a sample by using combinations of different sampling methods.