Sampling is not required when:
A)the auditor is conducting tests of controls
B)an audit procedure is conducted on an entire group of transactions
C)it is the first year that the auditor has done the audit for a client
D)the client requests the auditor not to collect samples of certain transactions

Question

Quizplus · Accepted Answer

Sampling is not required when an audit procedure is conducted on an entire group of transactions. This means that the auditor is examining 100% of the transactions, so there is no need to sample. However, when conducting tests of controls, sampling is still necessary to determine the effectiveness of the controls in place. It is also important for the auditor to collect samples of transactions in subsequent years, even if it is the first year of the audit, to establish a basis for comparison and identify changes in the client's financial situation. The client's request to not collect samples of certain transactions should not be the sole determining factor in the auditor's decision to sample, as it may indicate a possible red flag or risk.

Sampling Is Not Required When