When the auditor would like to improve the efficiency of the audit by focusing work on transactions that may be more subject to material error in a particular area of the population,the auditor will use
A)block testing.
B)haphazard sample selection.
C)random sample selection.
D)stratified sample selection.

Question

Quizplus · Accepted Answer

Stratified sample selection involves dividing the population into subgroups, or strata, based on a specific characteristic (such as transaction type or dollar value) and then selecting samples from each stratum. This allows the auditor to focus on areas that may have a higher risk of material error and can improve the efficiency of the audit by reducing the need to test every single transaction in the population.

When the Auditor Would Like to Improve the Efficiency of the Audit