An advantage of using statistical sampling techniques is that such techniques:
A) eliminate the need for judgemental decisions.
B) mathematically measure risk.
C) have been established in the courts to be superior to judgmental sampling.
D) define the values of precision and reliability required to provide audit satisfaction.

Question

Quizplus · Accepted Answer

Statistical sampling techniques mathematically measure risk, which allows auditors to quantify and control audit risk. This is an advantage over judgmental sampling, where auditors rely on their own judgment and expertise. However, statistical sampling does not eliminate the need for judgemental decisions entirely, as auditors need to make decisions about the appropriate sampling method and sample size. Additionally, while statistical sampling has been widely accepted in the court system, there is no clear superiority over judgmental sampling in all circumstances. The values of precision and reliability are important considerations in selecting a sampling method, but they are not defining characteristics of statistical sampling techniques.

An Advantage of Using Statistical Sampling Techniques Is That Such