What is the primary objective of testing all individually significant items rather than sample testing?
A)To increase the audit risk at which a decision will be reached from the results of the sample selected.
B)To increase sample size.
C)To accept no sampling risk for items greater than tolerable misstatement.
D)To increase the size of the confidence bound around the projected misstatement.

Question

Quizplus · Accepted Answer

The primary objective of testing all individually significant items rather than sample testing is to accept no sampling risk for items greater than tolerable misstatement. By testing all individually significant items, auditors can minimize the risk of material misstatement in the financial statements. This approach provides a higher level of assurance than sample testing, as there is no sampling risk associated with the individually significant items that are tested.

What Is the Primary Objective of Testing All Individually Significant