Question

An auditor uses statistical sampling to test receivables

Q: Answer-An auditor uses statistical sampling to test receivables confirmations. Why is statistical sampling...

Statistical sampling allows quantification of sampling risk and more objective evaluation of evidence. It does not remove judgment or guarantee detection, but enhances reliability.

confirmations. Why is statistical sampling often preferred over judgmental sampling?

A It requires fewer samples.

B It allows quantification of sampling risk and more objective evaluation.

C It eliminates need for professional judgment.

D It guarantees detection of all misstatements.

E It is cheaper and faster.

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An auditor uses statistical sampling to test receivables

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