CMA Intermediate · Corporate Accounting and Auditing · Audit Sampling, Audit Techniques and Analytical Procedure
SA 530 requires the auditor to determine a sample size that is sufficient to:
The sample size must be sufficient to reduce sampling risk to an acceptably low level. SA 530 sets no fixed percentage of the population and does not claim that sampling removes all risk or all misstatements, so the other statements are incorrect.
- Areduce sampling risk to an acceptably low levelCorrect
- Beliminate non-sampling risk completely
- Censure that exactly 10% of the population is tested
- Densure that no misstatement remains in the population
Explanation
The standard states that the auditor shall determine a sample size sufficient to reduce sampling risk to an acceptably low level. It does not prescribe a fixed percentage, nor does it promise elimination of non-sampling risk or of all misstatements.
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