ExpertACCA · Question 13 · Audit Evidence
CASE SCENARIO: Global Freightways PLC
Global Freightways PLC is a cross-border logistics and shipping multinational. You are the audit senior for the year ended 31 March 20X7. The company has complex revenue recognition policies due to shipments spanning multiple accounting periods. Furthermore, they hold significant foreign currency bank accounts. Global Freightways relies heavily on a bespoke, automated IT system called 'Track-It' to record shipments, calculate freight charges, and generate invoices automatically based on weight and distance.
QUESTION:
You are selecting a sample of shipments to test for revenue cut-off. You decide to select every 20th shipment recorded in the 'Track-It' system for the two weeks before and after the year-end. Which sampling method are you using?
CASE SCENARIO: Global Freightways PLC
Global Freightways PLC is a cross-border logistics and shipping multinational. You are the audit senior for the year ended 31 March 20X7. The company has complex revenue recognition policies due to shipments spanning multiple accounting periods. Furthermore, they hold significant foreign currency bank accounts. Global Freightways relies heavily on a bespoke, automated IT system called 'Track-It' to record shipments, calculate freight charges, and generate invoices automatically based on weight and distance.
QUESTION:
You are selecting a sample of shipments to test for revenue cut-off. You decide to select every 20th shipment recorded in the 'Track-It' system for the two weeks before and after the year-end. Which sampling method are you using?
Answer options:
Random sampling
Stratified sampling
Systematic sampling
Haphazard sampling
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