Which of the following is an audit sampling approach?
A) The auditor identifies all items greater than $10 000 from the cash receipts journals and tests 50 per cent of these items.
B) The auditor randomly selects 10 per cent of the items from a cash receipts journal, for vouching back to supporting documents.
C) The auditor identifies all cash receipts from a particular customer and tests 50 per cent of these items.
D) All of the above.

Question

Quizplus · Accepted Answer

Option B is an audit sampling approach because it involves randomly selecting a portion of the items from a cash receipts journal for testing. Option A identifies all items greater than $10,000, which is not a random sample, and Option C identifies all receipts from a specific customer, which could introduce sampling bias.

Which of the Following Is an Audit Sampling Approach