Statistical sampling provides a technique for
A) Exactly defining materiality.
B) Greatly reducing the amount of substantive testing.
C) Eliminating judgment in testing.
D) Measuring the sufficiency of evidential matter.

Question

Quizplus · Accepted Answer

Statistical sampling allows auditors to measure the sufficiency of evidential matter by using mathematical calculations to estimate characteristics of the population based on a sample. It does not eliminate judgment, and while it can reduce the amount of substantive testing needed, it does not eliminate the need for substantive testing altogether. Materiality is not exactly defined through statistical sampling.

Statistical Sampling Provides a Technique for