Statistical sampling is less commonly used for the audit of accounts payable than for accounts receivable because it is more difficult to:
A) mathematically calculate and interpret the results.
B) determine the tolerable exception rate.
C) define the population.
D) decide on attributes or variables sampling.

Question

Quizplus · Accepted Answer

Accounts payable may involve a larger number of vendors and transactions compared to accounts receivable, making it challenging to define the population accurately. This may result in a higher risk of sampling errors. Therefore, statistical sampling may not be suitable for accounts payable audits.

Statistical Sampling Is Less Commonly Used for the Audit of Accounts