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.