Audit Sampling: Audit sampling is a technique used by auditors to select a subset...
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Accounting
Audit Sampling:
Audit sampling is a technique used by auditors to select a subset of data from a larger population for testing purposes. It is impractical for auditors to examine every transaction or item within a population due to time and cost constraints. Instead, auditors use sampling to obtain sufficient and appropriate audit evidence to support their conclusions about the population as a whole. Audit sampling can be performed using either statistical or nonstatistical methods, depending on factors such as the nature of the audit engagement, the characteristics of the population, and the auditor's professional judgment.
Objective Type Question:
Which of the following best describes audit sampling?
A The process of examining every transaction within a population
B A technique used by auditors to select a subset of data from a larger population for testing purposes
C The final audit opinion rendered by auditors
D The detailed testing of transactions conducted by auditors
Choose the correct option that defines audit sampling.
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