Popular ways that an auditor might search an audit population for notable items include:
A)Clustering transactions or balances based on a particular characteristic or multiple characteristics.
B)Matching the characteristics of two populations to see if there are any overlaps.
C)Statistical analysis, such as regression analysis, where the notable items are identified using statistics
D)All these answer choices are correct.

Question

Quizplus · Accepted Answer

All of the choices presented are common ways for auditors to search for notable items in a population. Clustering transactions or balances based on certain characteristics can help identify groups of transactions that may be more susceptible to fraud or error. Matching the characteristics of two populations can help identify overlaps or discrepancies that may require further investigation. Statistical analysis, such as regression analysis or other techniques, can help identify outliers or unusual patterns that warrant further investigation. Therefore, all of the answer choices are correct.

Popular Ways That an Auditor Might Search an Audit Population