One of the purposes of using statistical sampling is to quantify sampling risk.For which of the following audit tests would sampling risk be zero?
A)The auditor used monetary unit sampling to select a sample of payroll payments.
B)The auditor used attribute sampling to select a sample of shipping documents.
C)The auditor sent empty (zero balance)external confirmations to suppliers with large dollar balances.
D)The auditor sent external confirmations to all financial institutions used by the client.

Question

Quizplus · Accepted Answer

Sampling risk can be zero when the auditor uses a testing approach that results in examining 100% of the population, such as sending external confirmations to all financial institutions used by the client. This eliminates the risk of making a incorrect conclusion based on a sample. For the other options, there is still some level of sampling risk as the auditor is only examining a portion of the population.

One of the Purposes of Using Statistical Sampling Is to Quantify