Harvey Jones,CPA,uses statistical sampling to test control procedures.What is a benefit of using statistical sampling?
A) It provides a means of mathematically measuring the sampling risk that result from examining only a part of the data.
B) It eliminates the use of judgment required of Jones because the AICPA has established numerical criteria for this type of testing.
C) It increases Jones' knowledge of the client's prescribed procedures and their limitations.
D) It is required by generally accepted auditing standards.

Question

Quizplus · Accepted Answer

Using statistical sampling allows for the calculation of sampling risk, which is the risk that the sample did not represent the population accurately. This helps the auditor to make more informed decisions about the controls being tested and to assess the risk of material misstatement in the financial statements.

Harvey Jones,CPA,uses Statistical Sampling to Test Control Procedures