An auditor uses sampling to determine the reasonableness of an account balance by performing detailed analysis of items making up the account balance.

Question

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The statement is true. Auditors often use sampling methods to perform detailed analysis of items making up an account balance to determine its reasonableness. This helps them assess the risk of material misstatement and identify any potential errors or irregularities in the financial statements.

An Auditor Uses Sampling to Determine the Reasonableness of an Account