Why is defining the population so important in a sampling application?
A)To permit the auditor to select the appropriate type of substantive procedure.
B)To ensure that the results appropriately represent the entire population.
C)To reduce sampling risk to the appropriate level.
D)To allow the auditor to appropriately measure sample items.

Question

Quizplus · Accepted Answer

Defining the population is crucial in a sampling application as it ensures that the results accurately represent the entire population. The population definition helps in selecting the appropriate sampling methodology and sample size. The auditor can use the defined population to draw a representative sample that is likely to reflect the characteristics of the entire population. This method helps reduce sampling risk and increases the reliability of the sample results. Furthermore, defining the population allows the auditor to measure sample items and select suitable substantive procedures.

Why Is Defining the Population So Important in a Sampling