It is normal for the auditor to verify large and unusual transactions for the entire year as well as a representative sample of typical additions.The size of the sample for substantive testing depends on the auditor's
A)sampling selection methodology used.
B)assessed control risk and assessed inherent risks.
C)understanding of the nature of internal controls.
D)availability of client resources to pull supporting documentation.

Question

Quizplus · Accepted Answer

The size of the sample for substantive testing depends on the auditor's assessed control risk and assessed inherent risks. These factors determine the level of audit risk and the amount of evidence needed to support the auditor's opinion. The sampling selection methodology, understanding of internal controls, and availability of client resources may also be factors that influence the size or selection of the sample, but they are not the primary determinants.

It Is Normal for the Auditor to Verify Large and Unusual