A random sample for tests of controls is a sample
A)that is representative of the population
B)large enough to reduce sampling error to an acceptable level
C)that includes a monetary amount in the item selected
D)that will be subject to the internal control system of the client
E)where every item in the population has an equal chance of selection
F)both A and C
G)both A and E
H)both B and D

Question

Quizplus · Accepted Answer

A random sample for tests of controls should be representative of the population and have every item in the population have an equal chance of selection. Including a monetary amount in the item selected (choice C) is not necessary for a random sample, and being subject to the internal control system of the client (choice D) does not necessarily make it a random sample. Additionally, the size of the sample (choice B) should be determined based on factors such as the risk of material misstatement and desired level of assurance, rather than simply reducing sampling error to an acceptable level. Choice F is incorrect because including a monetary amount is not necessary for a random sample.

A Random Sample for Tests of Controls Is a Sample