An IS auditor should use statistical sampling and not judgment (nonstatistical) sampling when:
A. The probability of error Must be objectively quantified. B. The auditor wishes to avoid sampling risk. C. Generalized audit software is unavailable. D. The tolerable error rate cannot be determined.
A. the probability of error must be objectively quantified.
Given an expected error rate and confidence level, statistical sampling is an objective method of sampling, which helps an IS auditor determine the sample size and quantify the probability of error (confidence coefficient). Choice B is incorrect because sampling risk is the risk of a sample not being representative of the population. This risk exists for both judgment and statistical samples. Choice C is incorrect because statistical sampling does not require the use of generalized audit software. Choice D is incorrect because the tolerable error rate must be predetermined for both judgment and statistical sampling.