Harvey Jones, CPA, uses statistical sampling to test control procedures. What is a benefit of using statistical sampling?
A)It provides a means of mathematically measuring the sampling risk that result from examining only a part of the data.
B)It eliminates the use of judgment required of Jones because the AICPA has established numerical criteria for this type of testing.
C)It increases Jones' knowledge of the entity's prescribed procedures and their limitations.
D)It is required by generally accepted auditing standards.

Question

Quizplus · Accepted Answer

Using statistical sampling allows Harvey Jones to estimate the sampling risk associated with examining a sample of data rather than examining the entire population. This provides a means of mathematically measuring the likelihood that the sample does not represent the entire population. Therefore, option A is the best choice. Option B is incorrect because there is still some element of judgment involved in selecting the appropriate sample size and evaluating the results. Option C may be a potential benefit of auditing in general, but it does not relate specifically to the use of statistical sampling. Option D is incorrect because while statistical sampling may be recommended by auditing standards, it is not necessarily required for all engagements.

Harvey Jones, CPA, Uses Statistical Sampling to Test Control Procedures