In performing a review of a client's cash disbursements, an auditor uses systematic sample selection with a random start. The primary disadvantage of this technique is population items
A) may occur twice in the sample.
B) must be reordered in a systematic pattern before the sample can be drawn.
C) may occur in a systematic pattern, thus negating the randomness of the sample.
D) must be replaced in the population after sampling to permit valid statistical inference.

Question

Quizplus · Accepted Answer

The primary disadvantage of systematic sample selection with a random start is that population items may occur in a systematic pattern, thus negating the randomness of the sample. This can lead to a biased sample and undermine the validity of statistical inference. To minimize this risk, auditors may use alternative sample selection methods, such as simple random sampling or stratified random sampling, depending on the specific audit objectives and population characteristics.

In Performing a Review of a Client's Cash Disbursements, an Auditor