An advantage of using statistical sampling techniques is that such techniques:
A)Mathematically measure risk.
B)Eliminate the need for judgmental decisions.
C)Define the values of the allowance for sampling risk and tolerable misstatement required to provide audit satisfaction.
D)Have been established in the courts to be superior to judgmental sampling.

Question

Quizplus · Accepted Answer

Statistical sampling techniques allow auditors to mathematically measure risk and determine the appropriate sample size and the sampling risk associated with a given population. This enables auditors to provide a reasonable level of assurance without the need for subjective judgmental decisions. However, statistical sampling techniques are not necessarily superior to judgmental sampling in all circumstances, and their effectiveness may depend on the nature and complexity of the audit population.

An Advantage of Using Statistical Sampling Techniques Is That Such