When statistical sampling methods are used by the client in determining inventories, professional standards require that the auditor ascertain the following except that the:
A) sampling plan has statistical validity.
B) sampling plan has been properly applied.
C) results in terms of reliability are reasonable.
D) appropriate tests of transactions have been applied.
E) results in terms of precision are reasonable.

Question

Quizplus · Accepted Answer

The auditor's concern with a client's use of statistical sampling in determining inventories primarily focuses on the validity, application, and results (both reliability and precision) of the sampling plan. The application of appropriate tests of transactions, while important in auditing, is not directly related to the assessment of the client's inventory sampling method.

When Statistical Sampling Methods Are Used by the Client in Determining