Question

Auditors can use statistical audit sampling _______.

1) to determine which clients to accept
2) to select a sample of items to test
3) as a means of testing the system of internal control
4) to determine which accounts should not be audited

Answer 1

Auditors use statistical audit sampling to select a sample of items for testing and to evaluate the system of internal control, but not for client acceptance or determining accounts to forgo auditing.

Step-by-step explanation:

Auditors can use statistical audit sampling to select a sample of items to test as well as as a means of testing the system of internal control. It is a technique that enables auditors to evaluate the regularity of financial records without examining all the data. Auditors do not use statistical audit sampling to determine which clients to accept or to determine which accounts should not be audited as these decisions involve judgment that goes beyond the scope of sampling.