Question

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its unique ability to:

1) define the precision required to provide audit satisfaction.
2) mathematically measure uncertainty.
3) establish conclusive audit evidence with decreased audit effort.
4) promote a more legally defensible procedural approach.

Answer 1

The principal advantage of statistical sampling preferred by some auditors is its ability to mathematically measure uncertainty, providing more objective, precise, and potentially legally defensible audit conclusions.

Step-by-step explanation:

Auditors who prefer statistical sampling over nonstatistical sampling believe that its principal advantage is the ability to mathematically measure uncertainty. Statistical sampling allows for the quantification of sampling risk and provides a method for auditors to objectively determine the sample size needed to achieve a certain level of precision in the results.

This leads to a more scientifically grounded approach to audit procedures and a clearer understanding of the reliability and validity of audit conclusions, while also potentially supporting a more legally defensible auditing process.

Nonstatistical sampling methods, such as convenience sampling or cluster sampling, may be more practical or cheaper, but they cannot provide the same level of assurance about how well the sample results reflect the whole population since they may introduce bias and are not based on probability.