Factors that the auditor should consider when choosing between nonstatistical and statistical sampling include
A)whether the audit staff is adequately trained to use statistical sampling.
B)whether the population lends itself to a random-based selection method.
C)whether the auditor wants an objective measure of the risk of drawing a wrong conclusion.
D)all of the above.

Question

Quizplus · Accepted Answer

The auditor should consider all of the factors listed when choosing between nonstatistical and statistical sampling. The auditor should choose statistical sampling when the audit staff is adequately trained to use statistical sampling, the population lends itself to a random-based selection method, and the auditor wants an objective measure of the risk of drawing a wrong conclusion. Choosing nonstatistical sampling may be more appropriate when the population is small, the auditor has prior experience with the population, or the auditor is interested in identifying specific items for testing.

Factors That the Auditor Should Consider When Choosing Between Nonstatistical