Question

In using sequential sampling to test controls that generally have been very effective in prior audits, which of the following is correct?

• A. Depending on the outcome of the initial sample, sequential sampling may result in a larger sample size relative to a fixed sampling plan.
• B. Sequential sampling will always provide auditors with the smallest final sample size for a given set of sampling parameters.
• C. Sequential sampling is inappropriate for this situation because it is likely that controls are effective.
• D. Sequential sampling should only be used if the auditor has assess control risk at a high level.

Answer 1

Sequential sampling is a sampling technique that involves the evaluation of each sample taken from a population to see if it fits a desired conclusion; the auditor stops evaluating samples as soon as there is sufficient support for the conclusion. This approach can result in fewer sampling units being examined, though the sampling will continue if any deviations are found.

Therefore Option A is correct

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