An advantage of using statistical sampling techniques is that such techniques
A) quantify sampling risk.
B) eliminate the need for judgmental decisions.
C) define the values of precision and reliability 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 help in quantifying the sampling risk associated with the audit process, which is the risk that the sample selected may not be representative of the population. By using statistical techniques, auditors can estimate the level of sampling risk and control it to an acceptable level. Hence, option A is the correct answer. Options B, C, and D are incorrect because statistical sampling techniques do not eliminate the need for judgmental decisions, do not define the values of precision and reliability, and may not be superior to judgmental sampling in all circumstances.

An Advantage of Using Statistical Sampling Techniques Is That Such