ACCA AA · Chapter 10 · Question 4 of 10
Which of the following sample selection methods is NOT appropriate when using statistical sampling?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Haphazard selection
Explanation
Statistical sampling requires random selection of items so that probability theory can be used to evaluate results. Haphazard selection, where the auditor picks items without a structured technique, is acceptable only for non-statistical sampling because it cannot guarantee every item has a known chance of selection.
More Sampling, automated tools and using the work of others MCQs
- Q6What is 'test data' as a computer-assisted audit technique?
- Q7Which of the following is a key benefit of using data analytics in an audit?
- Q8Under ISA 620, which of the following must the auditor evaluate before using the work of an auditor's expert, such as a property valuer?
- Q9An audit firm used an independent actuary to evaluate a client's defined benefit pension obligation and is issuing an unmodified opinion…
- Q10Pintle Co outsources its payroll processing to a service organisation. Under ISA 402, which type of service organisation report would…