Internal auditors use statistical sampling rather than nonstatistical sampling to:
a) Allow the auditor to quantify, and therefore control, the risk of making an incorrect decision based on sample evidence.
b) Reduce the problems associated with the auditor's judgment concerning the competency of the evidence gathered when nonstatistical sampling is used.
c) Obtain a sample more representative of the population than would be obtained using nonstatistical sampling techniques.
d) Use a smaller sample size.
Ans: a) Allow the auditor to quantify, and therefore control, the risk of making an incorrect decision based on sample evidence.
You might also like to view...
Accrued expenses:
A. Are generally paid in services rather than cash. B. Result from payment before services are received. C. Result from services received before payment. D. Are deferred charges to expense.
The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way
A) consistency B) depth C) width D) length E) composition