Which of the following statements best describes nonstatistical sampling?
A) Nonstatistical sampling does not allow the auditor to measure the exposure to sampling risk.
B) Nonstatistical sampling selects only very large dollar items for examination.
C) Nonstatistical sampling should be used only in situations in which the auditor anticipates issuing a qualified or adverse opinion on the client's financial statements.
D) Nonstatistical sampling should be used when the auditor selects a substantive audit approach.

Question

Quizplus · Accepted Answer

Nonstatistical sampling does not involve the use of mathematical techniques to measure sampling risk. Instead, the auditor makes subjective judgments about which items to select for testing based on factors such as the risk of material misstatement and the importance of the items to the financial statements. Therefore, nonstatistical sampling does not allow the auditor to quantify the exposure to sampling risk.

Which of the Following Statements Best Describes Nonstatistical Sampling