The use of audit sampling________.
a. is mandatory for all publicly traded companies b. may be a function of the efficiency and effectiveness of the internal auditors c. may be a function of the efficiency and effectiveness of the audit procedure
d. is prohibited by the AICPA Jessie and Susan are working on the audit of Parker LLC, a medium-sized firm and distributor of cotton products throughout the continental United States. Jessie has just finished explaining why auditors obtain samples rather than test entire populations to Susan. Susan replies that although she understands, it would seem safer for the auditor just to test the entire population in order to be able to offer a higher level of assurance. Which of the following represents Jessie's best response to this?
a. The auditors tend to test samples more so than populations because the internal audit function routinely tests populations throughout the year b. Auditors obtain and test a sample instead of the entire population because it would take too much time and be too expensive for the auditor to test the populations of all accounts.
c. None of the choices is correct. d. Auditors only obtain and test samples because statistical theory holds that if the auditor obtains a sample size of at least ten percent of the population, the conclusions reached will be the same either way.