When testing internal controls,which of the following statements is not true with respect to the use of nonstatistical sampling?
A)Nonstatistical sampling is permitted in the audits of both public and nonpublic entities.
B)Nonstatistical sampling does not require the use of random selection techniques.
C)When using nonstatistical sampling,auditors are required to quantify the parameters used to determine sample size.
D)Auditors are required to use professional judgment in evaluating the sample results in a nonstatistical sampling application.

Question

Quizplus · Accepted Answer

Nonstatistical sampling does not require the use of quantitative data or statistical calculations to determine sample size or evaluate sample results. Instead, auditors use professional judgment based on factors such as risk, materiality, and past experience. Therefore, statement C is not true as auditors using nonstatistical sampling are not required to quantify the parameters used to determine sample size. The other statements are true.

When Testing Internal Controls,which of the Following Statements Is Not