When selecting items for testing, the auditor concentrates their selection on high dollar value items. This approach is:
A) never appropriate in performing audit procedures under Australian auditing standards.
B) not an audit sampling technique but is often an appropriate evidence collection technique.
C) appropriate only if the auditor is undertaking statistical sampling.
D) generally a useful and efficient method for all audit tests.

Question

Quizplus · Accepted Answer

This approach is not considered an audit sampling technique but is often an appropriate evidence collection technique, especially when resources are limited. However, the auditor should also consider selecting items that are important to financial statement assertions and that have a greater risk of misstatement, regardless of their dollar value.

When Selecting Items for Testing, the Auditor Concentrates Their Selection