One method of selecting specific items from a population when testing for overstatement is to _______.
A)select items that are over a certain dollar amount
B)select items that are identical dollar amounts
C)allow the internal auditors to select them
D)allow management to select them

Question

Quizplus · Accepted Answer

Selecting items that are over a certain dollar amount increases the likelihood of selecting items that will have a material effect on the financial statements and are therefore more likely to be overstated. Selecting items that are identical dollar amounts or allowing management to select them may not provide a representative sample for testing. Allowing internal auditors to select them may lead to biased selection.

One Method of Selecting Specific Items from a Population When