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

Under SA 530, when designing an audit sample, the auditor shall consider which of the following?

The auditor shall consider the purpose of the audit procedure and the characteristics of the population from which the sample will be drawn. SA 530 sets these as the basis for design, so factors such as client preference or fee budget are not the criteria.

  1. AOnly the monetary value of the population, since the characteristics are irrelevant
  2. BThe purpose of the audit procedure and the characteristics of the population from which the sample will be drawnCorrect
  3. COnly the audit fee budget and the time available
  4. DThe client's preference for the items to be examined

Explanation

SA 530 requires the auditor, when designing a sample, to consider both the purpose of the audit procedure and the characteristics of the population. The other options are not the basis the standard prescribes. Management's preference or the fee budget cannot drive sample design.

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