Discuss situations when sampling would not be best method

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Reference no: EM131821902

Problem

Sampling is the application of an audit procedure to less than 100% of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of all the items within the balance or class of transactions. Sampling is performed because it is more efficient than testing 100% of a population. Statement on Auditing Standards No. 39 on Audit Sampling provides guidance on the use of sampling in an audit of financial statements. Auditing standards indicate that not all instances of account balance or population being reviewed for trends and accuracy are appropriate for sampling.

Discuss situations when sampling would not be the best method to validate account balances or classes of transactions. Explain.

Reference no: EM131821902

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