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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

An internal auditor at Sundaram Textiles Ltd wants to confirm that every purchase invoice above ₹5 lakh was approved by the purchase manager. The auditor has the full population of such invoices in a spreadsheet and chooses to check all 140 of them instead of a selection. Which approach is this?

This is a 100 percent examination. The auditor tests every item in the population of 140 invoices rather than a selected portion, so no sampling is involved. Sampling methods such as random, judgmental or block selection apply only when a part of the population is examined.

  1. A100 percent examinationCorrect
  2. BStatistical random sampling
  3. CJudgmental sampling
  4. DBlock sampling

Explanation

Checking every item in the population is a 100 percent examination, also called complete checking. Sampling involves examining only part of the population. Here all 140 invoices are tested, so no sampling is involved.

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