Question

Under what circumstances is it acceptable to use a non-probability sample for an audit?

When the variable of interest is rare

When a large probe sample was previously selected

When the variable of interest is readily observable

When not generalizing to the population

Answer 1

When the variable interest is readily observable

Nonprofit organizations serve the public using funds contributed from donors, and are exempt from paying income tax. Because of their reliance on donors and their tax benefits, nonprofits are held accountable to their donors and the federal government. There are a number of elements that an independent auditor will scrutinize in a financial audit; preparing a checklist of these items can help your organization to come out of an audit unscathed