Exam CISA topic 1 question 1341 discussion

Discovery

its A 100%

Answer B B. Stop-or-go sampling. In stop-or-go sampling, the auditor examines each item in the sample sequentially. If an error is discovered at any point during the examination, the sampling process stops, and the auditor investigates further to determine the cause of the error and potentially take corrective action. In this method, the entire sample is deemed irregular if any errors are detected, regardless of the sample size or the proportion of errors within the sample. In contrast, the other sampling methods mentioned have different characteristics: A. Discovery sampling involves examining items until a specific number of errors are found or until a predetermined amount of time or resources are expended.

A. Discovery sampling Discovery sampling is used when the auditor’s objective is to find at least one instance of an occurrence. In this method, if a single error is found, it’s assumed that there may be more errors in the population, and the entire sample is considered irregular. This method is often used when the expected error rate is very low, but the presence of even a single error is significant.

The answer is A

A is right. Discovery sampling: This method is primarily used to detect fraud or other irregularities. If a single error is found, it implies a higher-than-expected presence of irregularities, leading to the assumption that the entire sample is tainted.

Stop or go sampling