An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to
A) Eliminate the risk of nonsampling error.
B) Reduce the level of audit risk and overall materiality to a relatively low level.
C) Measure the sufficiency of the evidence gathered.
D) Minimize the failure to detect misstatements and irregularities.

Question

Quizplus · Accepted Answer

Statistical sampling allows the auditor to measure the sufficiency of the evidence gathered, whereas nonstatistical sampling does not provide a precise means for doing so. While both types of sampling help to reduce audit risk, statistical sampling does not completely eliminate the risk of nonsampling error, nor does it guarantee the detection of all misstatements and irregularities.

An Advantage of Statistical Sampling Over Nonstatistical Sampling Is That