In short
Stratification divides a population into subgroups (strata) of items with similar characteristics, often by dollar size, so each stratum can be sampled separately.
Key takeaways
- It reduces variability within each stratum, which lowers the overall sample size needed.
- Items above a set amount are often tested 100%, with sampling used for the rest.
- Monetary unit sampling stratifies automatically by favoring large items.
Where it's tested
AUD: Audit Sampling — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a test of controls, the tolerable deviation rate is 5% and the computed upper deviation rate based on the sample is 6.2%. What should the auditor conclude?