The concept of stratification relates to _______.
A)only targeting certain accounts for audit procedures to be applied to
B)the idea of categorizing a sample based on certain sample characteristics
C)liability accounts only
D)equity accounts only

Question

Quizplus · Accepted Answer

Stratification in auditing and sampling refers to the process of dividing a population into subgroups or strata that are more homogeneous in certain characteristics. This approach is used to ensure that the sample more accurately represents the population, improving the efficiency and effectiveness of the audit procedures. It does not exclusively apply to liability or equity accounts, nor does it only involve targeting certain accounts for audit procedures.

The Concept of Stratification Relates to _______