An advantage of statistical sampling _______.
A)is that it allows an auditor to measure control risk, that is, the risk that the sample chosen by the auditor is not representative
B)is that it allows an auditor to measure sampling risk, that is, the risk that the sample chosen by the auditor is not representative
C)is that it allows an auditor to measure inherent risk, that is, the risk that the sample chosen by the auditor is not representative
D)is that it is cheaper to perform, resulting in lower audit fees for the client

Question

Quizplus · Accepted Answer

Statistical sampling allows an auditor to measure sampling risk, which is the risk that the sample chosen may not be representative of the population as a whole. This helps the auditor to assess the reliability of their conclusions based on the sample, and to determine whether additional testing is needed to reduce the risk of errors or misstatements. Control risk and inherent risk are separate concepts that are not directly related to sampling. While statistical sampling can be more efficient than testing 100% of the population, cost savings should not be the primary reason for using it.

An Advantage of Statistical Sampling _______