When will the use of statistical sampling be more relevant as - ProProfs Discuss
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When will the use of statistical sampling be more relevant as compared to judgment (non-statistical) sampling?



A. It is required to mitigate sampling risk
B. Auditor is inexperienced
C. The probability of error Must be objectively quantified
D. It is required to mitigate audit risk

This question is part of CISA - Mock Test - Domain 1 (100 Questions)
Asked by Hemangdoshi, Last updated: Aug 17, 2018

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hemangdoshi

Hemangdoshi

Answered on Feb 27, 2018

C. the probability of error must be objectively quantified

In any given scenario, statistical sampling is to be used when the probability of error must be objectively quantified (i.e no subjectivity is involved). Statistical sampling is an objective method of sampling in which each item has equal chance of selection. Choice A 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. Also, audit risk is applicable for both judgment and statistical sampling.
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