L11 Notes_Part_7 - sample 3 More likely sample is...

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Judgmental sampling Statistical sampling determine sample size explicitly recognizing relevant factors randomly select a representative sample apply audit procedures evaluate test results statistically using judgment judgmentally determine sample size implicitly recognizing relevant factors judgmentally select a representative sample apply audit procedures evaluate test results judgmentally
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Statistical Sampling: Pros + Cons Advantages of statistical sampling 1. Quantify sampling risk – ability to draw statistical inferences 2. Consistency in choosing and evaluating
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Unformatted text preview: sample. 3. More likely sample is representative. 4. Requires audit specify basis for judgments 5. More convincing in court. Disadvantages of statistical sampling 1. Training auditors in proper use + equipment. 2. Time to design and conduct sampling application. 3. Assume no prior knowledge of error distribution 4. Sometimes not justified due to small population The Assumption of Ignorance “Diversification is a protection against ignorance. It makes little sense for those who know what they are doing.” Warren Buffet...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L11 Notes_Part_7 - sample 3 More likely sample is...

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