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ACC 640 – Milestone 3 1 Yordanka Vonidova-Pierpont Milestone 3 ACC 640 Southern New Hampshire University
ACC 640 – Milestone 3 2 From: Yordanka Vonidova-Pierpont, Internal Audit To: CFO of Amazon Inc. Date: April 27, 2019 Subject: Recommendations to Management For better assisting with the accurate representation of the company, auditors could implement audit sampling to the auditing process. The audit sampling can be described as “the use of an audit procedure on a selection of the items within an account balance or class of transactions”. (Bragg). The sampling method provides equal chances for each unit to be selected for sampling. Audit sampling is used in cases with large population sizes like Amazon Inc. In such cases testing the entire population would not be efficient. Statistical sampling can be conducted through various methods. One method to incorporate audit sampling is the random selection, where units are selected randomly for examination. This selection is the most theoretically correct one. Another method is the systematic selection. This kind of selection uses fixed intervals for selecting units like every 10 th unit for example. This approach is relatively efficient. The monetary unit selection is another statistical method. This approach is used to estimate the amount of monetary misstatement for an

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