The use of statistical sampling is less common for the audit of accounts payable than for accounts receivable because it is more difficult to define the population and determine the population size in accounts payable.

Question

Quizplus · Accepted Answer

Accounts payable can include a variety of different types of transactions, such as invoices, bills, and payments, which can make it difficult to define a clear population and determine the total population size. Additionally, accounts payable may involve a larger number of small transactions in comparison to accounts receivable, which may make it more challenging to design an effective sampling plan.

The Use of Statistical Sampling Is Less Common for the Audit