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Exam AUD topic 1 question 877 discussion

Actual exam question from AICPA's AUD
Question #: 877
Topic #: 1
[All AUD Questions]

An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods:

  • A. Can more easily convert the sample into a dual-purpose test useful for substantive testing.
  • B. Eliminate the need to use judgment in determining appropriate sample sizes.
  • C. Afford greater assurance than a nonstatistical sample of equal size.
  • D. Provide an objective basis for quantitatively evaluating sample risk.
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Suggested Answer: D 🗳️
Choice "D" is correct. By using statistical sampling, the auditor can quantify sampling risk to assist in limiting it to a level considered acceptable.
Choice "A" is incorrect. Statistical sampling does not provide any advantage with respect to converting the test into a dual-purpose test.
Choice "B" is incorrect. Statistical sampling still requires judgment to determine sample sizes. The tolerable rate of deviation, the likely rate of deviation, and the allowable risk of assessing control risk too low are all determined by the auditor's professional judgment.
Choice "C" is incorrect. Statistical sampling does not afford greater assurance than a nonstatistical sample of the same size. It only provides the auditor with a better measure of the sufficiency of the evidence found, and helps to evaluate the results found.
by gemazyni at April 5, 2025, 5:14 p.m.

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