[foodistan]

I have practiced more than 2000 Auditing questions …. but this question just DOESNOT MAKE ANYSENSE!!!

The answer is C. But how is that possible? When “risk of incorrect acceptance” has nothing to do with test of attributes! It is related with variable sampling. Even the explanation seems vague and complex…

Q) If the size of the sample to be used in a particular test of attributes has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures

a)No inference can be drawn form the sample.

b)The auditor has committed a nonsampling error.

c)The auditor may or may not achieved desired allowance for sampling risk at the desired risk of incorrect acceptance.

d)The auditor will have to evaluate the results by reference to the principles of discovery sampling.

Answer A is incorrect because inferences can be drawn.

Answer B is incorrect. Nonsampling risk includes all aspects of ultimate risk that are not due to sampling. However, the error committed in this case is a sampling error.

Answer C is correct because although the use of random sampling makes it possible to calculate statistical conclusions, the wrong size sample will affect the achieved allowance for sampling risk at the desired risk of incorrect acceptance. For example, a sample which is too small will lead to a larger allowance for sampling risk than desired because of a larger than desired standard error of the mean.

AUD: 07/19/2012 - Passed! 89
BEC: 08/26/2012 - Passed! 85
FAR: 11/08/2012
REG: 01/07/2013

[Anonymous]

Interesting, I just did this question on Wiley too and of course I got it wrong. lol

[Anonymous]

I think this question is just asking the difference between statistical sampling and non- statistical sampling . The advantage of statistical sampling is that it is more reliable then non statistical sampling as we use mathematical calculations to determine the sample size.

Random sampling is more riskier , it doesn't means that you cannot achieve the results. But you might end up selecting wrong sample (either incorrect acceptance or incorrect rejection).

Answer C makes more sense.

Good Luck!

[Author]

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