An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to
A) eliminate the risk of nonsampling error.
B) reduce the level of audit risk and overall materiality to a relatively low level.
C) measure the sufficiency of the evidence gathered.
D) minimize the failure to detect misstatements and irregularities.

Question

Quizplus · Accepted Answer

Statistical sampling allows the auditor to measure the sufficiency of the evidence gathered by using a predetermined sample size and selection method. This helps ensure that the sample represents the population and provides a level of confidence in the results obtained. Nonstatistical sampling does not provide the same level of control over the sampling process and may result in a less representative sample. However, statistical sampling does not eliminate the risk of nonsampling error, reduce audit risk or overall materiality, or minimize the failure to detect misstatements and irregularities.

An Advantage of Statistical Sampling Over Nonstatistical Sampling Is That