Which of the following would be the most likely situation in which an auditor would use variables sampling?
A)Comparing the recorded balance in accounts receivable to expected balances or prior-years' balances.
B)Selecting customer balances in accounts receivable for confirmation.
C)Evaluating sales invoices for evidence of authorization by client personnel.
D)Mathematically evaluating the client's provision for the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Variables sampling is typically used when the auditor wants to estimate a value, such as a dollar amount or percentage, rather than simply testing for the presence or absence of a specific attribute. Selecting customer balances in accounts receivable for confirmation would likely involve selecting a sample of balances and estimating the overall accuracy of the account using variables sampling techniques.

Which of the Following Would Be the Most Likely Situation