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    Statistical sampling versus non-statistical sampling

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    1. Which is better, statistical sampling or non-statistical sampling? Why?
    2. Should Generally Accepted Auditing Standards prescribe specific risk levels that auditors must use? Why or why not?
    3. Which assertion is most important for fair presentation of financial statements?

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    1. Which is better, statistical sampling or non-statistical sampling? Why?
    In some circumstances, statistical sampling is more appropriate than non-statistical (judgment) sampling. Before deciding whether to use statistical or judgmental sampling, the auditor must:
    - Determine the audit objectives;
    - Identify the population characteristics of interest; and
    - State the degree of risk that is acceptable.

    After making those determinations, it may be advisable to use statistical sampling if the auditor has a well-defined population and can easily access the necessary documentation.

    The difference ...

    Solution Summary

    Statistical sampling and non-statistical sampling are compared.

    $2.19

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