Sampling Techniques Practice Test

In an audit of a nonissuer wholesaler, you plan substantive sampling over vendor invoices to test occurrence of purchases. The population includes 14,000 invoices, but 35 invoices are individually significant and together comprise 48% of the total purchases balance. The team is deciding how to design the sampling approach for the remaining invoices. Which sampling method should the auditor use?

You are performing an audit of a nonissuer manufacturer and plan to use sampling to test depreciation expense by examining additions to property, plant, and equipment (PP&E) for proper capitalization and start dates. The PP&E addition population is 420 items totaling $12.5 million, and the entity has inconsistent documentation for smaller tools and equipment. The auditor wants to reduce the risk of missing large misstatements while still covering the full population. Which sampling method should the auditor use?