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ACC 640 – Milestone 31Yordanka Vonidova-PierpontMilestone 3ACC 640Southern New Hampshire University
ACC 640 – Milestone 32From: Yordanka Vonidova-Pierpont, Internal AuditTo: CFO of Amazon Inc.Date: April 27, 2019 Subject: Recommendations to ManagementFor better assisting with the accurate representation of the company, auditors couldimplement audit sampling to the auditing process. The audit sampling can be described as “theuse of an audit procedure on a selection of the items within an account balance or class oftransactions”. (Bragg). The sampling method provides equal chances for each unit to be selectedfor sampling. Audit sampling is used in cases with large population sizes like Amazon Inc. Insuch cases testing the entire population would not be efficient.Statistical sampling can be conducted through various methods. One method toincorporate audit sampling is the random selection, where units are selected randomly forexamination. This selection is the most theoretically correct one. Another method is thesystematic selection. This kind of selection uses fixed intervals for selecting units like every 10thunit for example. This approach is relatively efficient. The monetary unit selection is anotherstatistical method. This approach is used to estimate the amount of monetary misstatement for an