To test the integrity of the data in the accounts receivable master file, an IS auditor is particularly interested in reviewing customers with balances over $400,000
The selection technique the IS auditor would use to obtain such a sample is called:
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A. B. C. D.D.
The selection technique that the IS auditor would use to obtain a sample of customers with balances over $400,000 from the accounts receivable master file is D. stratification.
Stratification is a sampling technique that involves dividing a population into subgroups or strata based on specific criteria, such as account balances, and then selecting a sample from each subgroup in proportion to its size or importance. This technique is often used to ensure that the sample is representative of the population and that the sample includes a sufficient number of important or critical items.
In this case, the IS auditor is interested in reviewing customers with balances over $400,000. By stratifying the population of customers based on their account balances, the auditor can ensure that the sample includes a sufficient number of customers with balances over $400,000. The auditor can then select a sample from each stratum in proportion to its size or importance.
Random selection involves selecting items from a population randomly, without any predetermined criteria or stratification. Systematic selection involves selecting items from a population at fixed intervals, such as every 10th item. Discovery selection involves selecting items based on some unique or unusual characteristic that may indicate potential problems or risks.
In summary, the IS auditor would use the stratification technique to obtain a sample of customers with balances over $400,000 from the accounts receivable master file, in order to ensure that the sample is representative and includes a sufficient number of important items.