CPA Exam Section: Auditing & Attestation

CPA Review Topic: Audit Sampling

Question: Statistical sampling generally may be applied to test controls when the client’s internal control activities

a. Are carefully reduced to writing and are included in client accounting manuals.
b. Depend primarily on appropriate segregation of duties.
c. Leave an audit trail in the form of documentary evidence of compliance.
d. Enable the detection of material irregularities in the accounting records.

Source: Wiley Test Bank