An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods:
A)afford greater assurance than a nonstatistical sample of equal size.
B)provide an objective basis for quantitatively evaluating sample risks.
C)can more easily convert the sample into a dual-purpose test useful for substantive testing.
D)eliminate the need to use judgment in determining appropriate sample sizes.

Question

Quizplus · Accepted Answer

Statistical methods provide an objective basis for quantitatively evaluating sample risks. This allows auditors to measure the likelihood and impact of errors in the sample, which can help guide their audit procedures and determine whether additional testing is necessary. However, statistical methods do not necessarily afford greater assurance than nonstatistical methods of equal size, nor do they eliminate the need for judgment in determining sample sizes. Additionally, while statistical samples can sometimes be used for dual-purpose testing, this is not necessarily easier than with nonstatistical samples.

An Advantage of Using Statistical Over Nonstatistical Sampling Methods in Tests