A sequential sampling plan usually consists of two to four groups.Once the auditor has considered control deviations in the first group of sampling units,he decides whether to
A)accept the assessed level of inherent risk as planned,without examining additional sampling units
B)stop sampling because the tolerable rate of deviation cannot be achieved
C)examine additional sampling units because sufficient information to support the assessed level of control risk has not been found
D)sample additional units until the tolerable rate of deviation is achieved
E)examine additional sampling units because sufficient information to support the actual level of control risk has not been found
F)both A and C
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

Sequential sampling involves examining additional sampling units if initial samples do not provide sufficient evidence to support an assessment. If the tolerable rate of deviation cannot be achieved based on initial samples, the auditor may decide to stop sampling (B). If sufficient information to support the assessed level of control risk is not found, the auditor may examine additional sampling units (C).

A Sequential Sampling Plan Usually Consists of Two to Four