If the size of the sample to be used in a particular test of controls has not been determined by utilising statistical concepts, but the sample has been chosen in accordance with random selection procedures:
A) the auditor has committed a non-sampling error.
B) no inferences can be drawn from the sample.
C) the auditor will have to evaluate the results by reference to the principles of discovery sampling.
D) the auditor may or may not achieve desired precision at the planned level of assessing control risk too low.

Question

Quizplus · Accepted Answer

Without determining the sample size using statistical concepts, the auditor cannot be sure if the achieved precision is sufficient. Hence, there is a possibility that the auditor may or may not achieve the desired precision at the planned level of assessing control risk too low. Therefore, choice D is the correct answer.

If the Size of the Sample to Be Used in a Particular