Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

Question

Quizplus · Accepted Answer

Both nonstatistical and statistical sampling can be appropriate methods for conducting substantive tests of details, depending on the circumstances of the examination. Nonstatistical sampling may be appropriate when the population being tested is small or highly homogeneous, while statistical sampling may be more appropriate when the population is larger and more diverse. Ultimately, the choice of sampling method should be based on professional judgment and should take into account factors such as the nature of the audit objective, the characteristics of the population being tested, and the risk of material misstatement.

Either Nonstatistical or Statistical Sampling Is Appropriate for Substantive Tests