In analyzing misstatements using sampling techniques,the auditor should analyze the misstatements
A)qualitatively and quantitatively.
B)absolutely and proportionately.
C)haphazardly and randomly.
D)methodically and systematically.

Question

Quizplus · Accepted Answer

When analyzing misstatements using sampling techniques, the auditor should analyze them qualitatively (to determine the nature of the misstatement) and quantitatively (to determine the dollar amount of the misstatement). This approach allows the auditor to understand the impact of the misstatement on the financial statements and to determine whether it is material or not. It is important for the auditor to analyze misstatements in both ways to obtain a complete picture of the situation. Therefore, option A is the best choice. Options B, C, and D are not applicable or relevant in this context.

In Analyzing Misstatements Using Sampling Techniques,the Auditor Should Analyze the Misstatements