Why do auditors generally use a sampling approach to evidence gathering?
A)Auditors are experts and do not need to look at much to know whether the financial statements are correct or not.
B)Auditors must balance the cost of the audit with the need for precision.
C)Auditors must limit their exposure to their auditee to maintain independence.
D)The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company.

Question

Quizplus · Accepted Answer

Auditors have to balance the cost of the audit with the need for precision. Sampling is a cost-effective approach where auditors test a representative sample of transactions instead of examining every transaction. This approach helps auditors to reduce the cost of the audit while still being able to provide reasonable assurance that the financial statements are free from material misstatements.

Why Do Auditors Generally Use a Sampling Approach to Evidence