Question

An auditor uses variables sampling when she/he is attempting to (remember choose the best answer)

Determine if accounts receivable is based on a company's credit policy

If it is suspected that a shipping department employee may be re-routing shipments to her personal address

The company is not including all of the accounts payable in their general ledger

You should use variables sampling in all of the above situations

Answer 1

Variable sampling is used for measurement of hardness , tensile strength , resistance and other physical properties of the desired sample. The variables used for measurement are on a continuous scale and the limits for rejection are clearly demarcated for the entire range. The sample which is tested from the complete lot is said to be its representative.

Therefore An auditor uses variables sampling when she/he is attempting to Determine if accounts receivable is based on a company's credit policy.