When evaluating sample test results, which of the following statements is incorrect?
A) If an auditor discovers errors when testing transactions or account balances, they will need to project the error to the population being tested.
B) An auditor will not consider whether the population was stratified before being sampled.
C) If an error is considered to be unique it will be removed before projecting remaining errors to the population.
D) If the rate of deviation exceeds the tolerable rate the auditor will extend their testing.

Question

Quizplus · Accepted Answer

An auditor should consider whether the population was stratified before being sampled because stratification may affect the sample size calculation and the sampling method used. The other statements are correct. If errors are found in the sample, the auditor will project the error to the population being tested. Unique errors may be excluded from the projection if they are not indicative of a larger problem. If the deviation rate exceeds the tolerable rate, the auditor will need to extend their testing to ensure the accuracy of the financial statements.

When Evaluating Sample Test Results, Which of the Following Statements