What is one of the primary benefits of stratifying a population?
A)Stratifying the population allows different types of audit procedures to be performed on larger and smaller transactions or components.
B)Stratifying the population allows the auditor to have a higher likelihood of reaching a favorable conclusion with respect to the client's financial statements.
C)Stratifying the population allows the auditor to reduce the necessary sample size.
D)Stratifying the population reduces the auditor's exposure to nonsampling risk.

Question

Quizplus · Accepted Answer

Stratifying the population allows the auditor to reduce the necessary sample size. By stratifying the population into smaller groups, the auditor can select a smaller sample size from each group, which can save time and resources while still providing a representative sample for testing.

What Is One of the Primary Benefits of Stratifying a Population