Audit samples for tests of controls may be designed using a fixed sampling plan or a sequential sampling plan.The auditor decides between the two plans based on
A)which plan he believes to be more effective
B)which plan he believes to be more efficient
C)which plan he believes to be more reliable
D)which plan he believes to be more relevant

Question

Quizplus · Accepted Answer

The auditor should base the choice between fixed sampling plan and sequential sampling plan on which plan is more efficient. Efficiency means choosing the plan that will allow the auditor to achieve the desired level of assurance with the least amount of effort and cost. Fixed sampling plans involve selecting a predetermined number of items for testing, and are generally less efficient than sequential sampling plans, which allow the auditor to adjust the sample size based on the results of previous tests. Therefore, sequential sampling plans are usually the more efficient choice.

Audit Samples for Tests of Controls May Be Designed Using