ICAEW ARF · Chapter 9 · Question 2 of 11
Which of the following is a feature of statistical sampling?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Random selection of items and the use of probability theory to evaluate the results
Explanation
Statistical sampling requires random selection and the use of probability theory to evaluate results, including measuring sampling risk. Any approach without both features is non-statistical. Judgemental selection and selecting only year-end items do not meet these requirements.
More Sampling and audit documentation MCQs
- 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…
- Q8Which of the following is NOT a purpose of audit documentation?