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An auditor is testing accounts receivable for a client that has 1,000 customers with customer balances that range from $150 to $185,000
An auditor is testing accounts receivable for a client that has 1,000 customers with customer balances that range from $150 to $185,000. The auditor subdivided the receivables into three groups: group 1 has all customers with receivable balances between $185,000 and $100,000, group 2 has all customers with receivable balances between $100,000 and $25,000, and group 3 has all customers with receivable balances less than $25,000. The auditor then randomly selects customers out of each group. This is known as:
a. random selection.
b. stratified sampling.
c. haphazard selection.
d. block selection
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