Question

The type of sampling most frequently used by auditors during their study of internal control is referred to as____.

1) Random sampling
2) Stratified sampling
3) Systematic sampling
4) Judgmental sampling

Answer 1

The type of sampling most frequently used by auditors during their study of internal control is judgmental sampling.

Step-by-step explanation:

The type of sampling most frequently used by auditors during their study of internal control is judgmental sampling.

While auditors may use a combination of sampling methods depending on the nature of the audit, judgmental sampling is often the preferred method for studying internal control. It involves selecting samples based on the auditor's judgment of risk and materiality, rather than using random or systematic sampling techniques.

For example, if an auditor suspects a high risk of fraud in certain areas of a company's internal control, they may choose to focus their sampling efforts on those specific areas to gather more detailed information.