ACCA Advanced Audit and Assurance (AAA) Practice Exam

Statistical sampling is characterized by which of the following?

1. Non-random selection of items

2. Use of the auditor's judgment exclusively

3. Random selection of sample items

4. Evaluation of results without probability theory

The correct answer is: Random selection of sample items

Statistical sampling is fundamentally based on the principle of random selection of sample items, which ensures that every item in the population has a known and non-zero chance of being included in the sample. This random selection is crucial because it allows the auditor to make inferences about the entire population based on the characteristics observed in the sample. By employing probability theory, statistical sampling also enables the auditor to calculate the sampling risk, confidence levels, and the precision of the estimated results, which are essential for providing a scientifically valid basis for audit conclusions. This methodology stands apart from other sampling techniques that may rely primarily on the auditor's subjective judgment or non-random methods, which could lead to biased results that do not accurately reflect the population. Therefore, the correct answer emphasizes the key characteristic of statistical sampling: the use of random selection, making it a critical tool in effective auditing practices.