IIA Exam IIA-CIA-Part2 Topic 8 Question 87 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 87
Topic #: 8

Which of the following is an advantage of nonstatistical sampling over statistical sampling?

ANonstatistical sampling provides more objective recommendations for management.

BNonstatistical sampling provides an opportunity to select the minimum sample size required to satisfy the objectives of the audit tests.

CNonstatistical sampling provides for the use of subjective judgment in determining the sample size.

DNonstatistical sampling permits the auditor to specify a level of reliability and the desired degree of precision.
Nonstatistical sampling allows auditors to use their professional judgment to determine the sample size and select the items to be tested. Unlike statistical sampling, which relies on probabilistic methods to determine the sample size and selection, nonstatistical sampling is more flexible and can be tailored to the specific circumstances of the audit engagement.
IIA Reference:
IIA Standard 2320: Analysis and Evaluation suggests that internal auditors should apply appropriate methods to analyze data and draw conclusions. Nonstatistical sampling allows for the application of professional judgment, which can be advantageous in certain audit situations where rigid statistical methods may not be practical or necessary.
The Practice Guide on Sampling discusses the differences between statistical and nonstatistical sampling, highlighting that nonstatistical sampling relies more on the auditor's judgment, which can be beneficial in certain contexts.
Given this, the correct answer is C. Nonstatistical sampling provides for the use of subjective judgment in determining the sample size.

Show Suggested Answer

Suggested Answer: C

by Verona at Sep 19, 2024, 07:04 AM

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2 months ago

Hmm, this question is a piece of cake. C is clearly the correct answer. After all, who needs statistics when you have good old-fashioned auditor's intuition?

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Margarita

21 days ago

It's true, sometimes relying on statistical methods may not be practical, so nonstatistical sampling can be advantageous in certain audit situations.

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Benton

22 days ago

Definitely, nonstatistical sampling gives auditors more flexibility to tailor the sample size based on their professional judgment.

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Glory

1 months ago

I agree, C is the correct answer. Nonstatistical sampling allows for subjective judgment.

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2 months ago

Nonstatistical sampling allows me to use my professional judgment, which is way better than relying on those boring statistical methods. C is the way to go!

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Renea

1 months ago

Yeah, it gives us more flexibility to tailor the sampling to the specific circumstances of the audit.

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Kathrine

2 months ago

I agree, using professional judgment in determining the sample size is definitely an advantage.

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