Reference no: EM133049775

Question - Jill works for an auditing firm that is auditing AHD Ltd. Jill selected a random sample of payroll transactions for December 2013 and January 2014 and traced each sample item back to the personnel records to verify that the employee being paid was a legitimate employee of the client. Based on his review of the sample items, Jill concluded that the controls for that assertion could be relied on in the audit.

Required -

a. Identify the population in this case.

b. Briefly explain sampling error and give an example of how Jill's conclusion could be incorrect due to sampling error.

c. Briefly explain non-sampling error and give an example of how Jill's conclusion could be incorrect due to non-sampling error.