Audit sampling is the application of an audit procedure:
A) using statistical methods to evaluate the propriety of the account balance or class of transactions.
B) to less than 100 per cent of the items within an account balance or class of transactions for the purpose of evaluating some characteristics of the balance or class.
C) applied to items selected randomly.
D) on a test basis.

Question

Quizplus · Accepted Answer

Audit sampling involves selecting less than 100% of the items within an account balance or class of transactions for the purpose of evaluating some characteristics of the balance or class. This method helps auditors to save time and cost while still providing reasonable assurance about the accuracy of financial statements. Therefore, option B is the most appropriate answer.

Audit Sampling Is the Application of an Audit Procedure