ACCA Advanced Audit and Assurance (AAA) Practice Exam

Which of the following is NOT a characteristic of statistical sampling?

1. Random selection

2. Use of probability theory

3. Non-representative sample

4. Measurement of sampling risk

The correct answer is: Non-representative sample

A fundamental characteristic of statistical sampling is that it aims to draw conclusions about a population based on a representative sample. Random selection is crucial because it ensures that every member of the population has an equal chance of being included in the sample, thus minimizing bias. The use of probability theory allows auditors to apply mathematical principles to estimate the characteristics of the entire population with a quantifiable level of confidence. Measurement of sampling risk is another essential characteristic, as it enables auditors to determine the degree of uncertainty associated with their findings from the sample. This risk evaluation is tied to the concept of how likely it is that the sample results differ from the results of examining the entire population. In contrast, a non-representative sample does not reflect the characteristics of the population accurately and is not a characteristic of statistical sampling. Using such a sample would undermine the purpose of statistical methods since it would not facilitate sound conclusions about the broader group. Therefore, the correct choice clearly identifies that non-representative samples do not align with the principles of statistical sampling.