If the auditor uses a statistical sampling program for the internal control test,
A)the auditor uses judgment to determine the allowance for non-sampling risk
B)the auditor uses judgment to determine the allowance for sampling risk
C)the statistical program will calculate an allowance for sampling risk
D)the statistical program will calculate an allowance for non-sampling risk

Question

Quizplus · Accepted Answer

Statistical sampling programs are designed to calculate an allowance for sampling risk, which is the risk that the sample is not representative of the population. Non-sampling risk, on the other hand, relates to factors that could cause audit errors not related to the sampling process itself, and its management often involves auditor judgment rather than statistical calculation.

If the Auditor Uses a Statistical Sampling Program for the Internal