Statistical sampling is an example of a specially designed auditing approach taken by the auditor designed to provide absolute assurance that the financial statements are free of material misstatements.

Question

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Statistical sampling is a sampling approach that provides the auditor with a reasonable level of assurance but not absolute assurance that the financial statements are free of material misstatements. Absolute assurance is not possible due to the inherent limitations of any audit process, including sampling.

Statistical Sampling Is an Example of a Specially Designed Auditing