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CMA Intermediate · Corporate Accounting and Auditing · Audit Sampling, Audit Techniques and Analytical Procedure

After performing a sample test, SA 530 requires the auditor to evaluate which of the following?

The auditor shall evaluate the results of the sample and whether the use of audit sampling has provided a reasonable basis for conclusions about the population that has been tested. Both parts are required, so looking only at sample results is incomplete.

  1. AOnly the results of the sample, without considering the population
  2. BThe results of the sample and whether the use of audit sampling has provided a reasonable basis for conclusions about the population testedCorrect
  3. COnly whether the client agrees with the sample results
  4. DWhether the sample is larger than the previous year's sample

Explanation

SA 530 requires evaluation of (a) the results of the sample and (b) whether audit sampling has provided a reasonable basis for conclusions about the population tested. Evaluating the sample alone omits the second limb. Client agreement and prior-year size are not the evaluation criteria.

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