Which of the following would be an improper technique when using statistical sampling in an audit of accounts receivable?
A) Using a sampling technique in which the same account balance could be selected more than once.
B) Combining negative and positive dollar misstatements in the evaluation of a sample.
C) Defining the sampling unit in the population as an individual dollar and not as an individual account balance.
D) Selecting a random starting point and then sampling every Nth dollar.

Question

Quizplus · Accepted Answer

Combining negative and positive dollar misstatements is not an accepted practice in the evaluation of a sample. The sample should only consist of positive misstatements, and the negative misstatements should be separately identified and evaluated. The other choices are accepted sampling techniques, although using a sampling technique where the same account balance could be selected more than once may increase the risk of over- or under-representation of a particular account balance in the sample.

Which of the Following Would Be an Improper Technique When