ICAEW ARF · Chapter 9 · Question 1 of 11
Which of the following best describes audit sampling?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Applying audit procedures to less than 100% of items in a population so that every sampling unit has a chance of selection
Explanation
Audit sampling allows the auditor to draw conclusions about a whole population from a selection, provided each unit has a chance of being selected. Testing only high-value items is a targeted approach, not sampling, and leaves the remainder untested. Testing 100% of items is not sampling at all.
More Sampling and audit documentation MCQs
- Q3An auditor wishes to select a sample of 60 sales invoices from a population of 2,400 invoices using systematic selection. What is the…
- Q4Which of the following describes haphazard selection?
- Q5When testing controls, which of the following would increase the required sample size?
- Q6Which of the following is an example of non-sampling risk?
- Q7An auditor tests a sample of receivables balances with a total value of £50,000 from a population of £800,000. Misstatements found in the…