Question

Why is variables sampling usually appropriate for substantive tests of financial statements accounts? give example?

Answer 1

Answer:

Variables sampling usually appropriate for substantive tests of financial statements accounts Because :-

Variable sampling is measures the accuracy of amounts in account balances and applied to account balance verification. and data is in the “variable” form and the result is rated on a continuous scale that measures the degree of conformity.

Example are:-

an auditor may use variable sampling for accounts receivable, inventories and fixed assets balances.