When does the auditor use simple random sampling?
A) when the auditor has a particular judgmental criteria that is used to select the sample
B) where the auditor wants numbers in sequence and would like to select the sample rapidly
C) for testing of cutoff after the year end with respect to accounts payable
D) for populations where each item is considered to have the same characteristics for audit purposes

Question

Quizplus · Accepted Answer

Simple random sampling is often used when the population has a homogenous characteristics where each item in the population is the same in terms of audit relevance. This provides a fair and equal chance of selecting any item in the population for testing purposes. Examples of using simple random sampling include selecting a sample of customer invoices for testing the completeness of revenue, or selecting a sample of vendors for testing the accuracy and completeness of accounts payable.

When Does the Auditor Use Simple Random Sampling