Definition of population

set of data consisting of all conceivable observations of a certain phenomenon. A sample contains only part of these observations. Examples of populations are: (1) number of defective and nondefective bolts produced in a factory on a given day; (2) heights andweights of students in a university; and (3) all possible outcomes (heads, tails) in successive tosses of a coin. Population can be finite or infinite. The first two examples are finite and the third example is infinite. Assume the auditor wants to verify promotion and entertainment expense of the company. The population is the total expense for the accounting period under examination. A sample can be derived on a random basis to check selected promotion and entertainment documentation so as to derive an inference about the population balance.