• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Statistical V/s Non- statistical sampling methods

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Statistical V/s Non- statistical sampling methods

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by Kim Smith.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • July 1, 2021 at 2:11 pm #626797
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Maam can you explain why the answer to this question is FALSE?

    Statistical sampling methods are more reliable than non-statistical methods.

    Source: Kaplan study text Ch 7 evidence

    July 1, 2021 at 2:35 pm #626799
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Also this one too ma’am -why is the answer to this one FALSE?:

    “The auditor must always use stratification to ensure a representative sample is tested”

    Source: Kaplan study text Ch 7 evidence

    July 1, 2021 at 3:15 pm #626802
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6789
    • ☆☆☆☆☆

    ISA 530 says nothing about the relative reliability of selection methods – as a concept, reliability is an aspect of the quality of audit evidence obtained.

    Consider for example – using monetary unit sampling on a list of trade receivables balances, the sample includes the 10 largest receivables balances for external confirmation (as well as others). The auditor could have chosen “judgmentally” to select the 20 largest balances. “Reliability” simply doesn’t come into a comparison of the two methods.

    When an option includes “always” or “never” you only have to think of one exception to show it to be false. So, for example, stratification can only be applied when the population has layers/bands of monetary amounts. So what if the population is Goods Received Notes? It’s simply not possible to stratify. Also – consider MUS – as illustrated in s.4. of Chapter 11 of the notes – the population of invoice values hasn’t be stratified – but still a representative sample will be obtained.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3
  • John Moffat on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • cBarsoum on The Stages of an Audit – Appointment – ACCA Audit and Assurance (AA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy