ExpertMedium1 markMultiple Choice
CPA · Question 60 · Area III: Performing Procedures
An auditor is using 'Stop-or-Go' sampling (Sequential Sampling). This method is most appropriate when the auditor expects:
An auditor is using 'Stop-or-Go' sampling (Sequential Sampling). This method is most appropriate when the auditor expects:
Answer options:
A.
A high rate of deviations.
B.
Zero or very few deviations in the population.
C.
To estimate the dollar value of the population.
D.
The population to be normally distributed.
How to approach this question
Stop-or-Go = Efficiency. Use it when you think everything is fine and want to prove it quickly.
Full Answer
B.Zero or very few deviations in the population.✓ Correct
Zero or very few deviations in the population.
Sequential (Stop-or-Go) sampling is designed to minimize sample size when the auditor expects zero deviations. If a deviation is found, the sample size expands significantly.
Common mistakes
Using it for high-error populations.
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