In which of the following circumstances must an auditor decide how best to select a sample that is representative of the entire population of items?
A)There are numerous transactions or items within an account balance.
B)An audit population is sufficiently small.
C)A client has a large balance of notes payable and the notes payable are with several banks.
D)There are few transactions or few items within an account balance.

Question

Quizplus · Accepted Answer

When there are numerous transactions or items within an account balance, the auditor must decide how to select a sample that is representative of the entire population. This is because it is not practical or necessary to review every single transaction or item, and so the auditor must use sampling methods to draw conclusions about the overall population.

In Which of the Following Circumstances Must an Auditor Decide