Which of the following best illustrates the concept of sampling risk?For which of the following tests would an auditor most likely use attributes sampling?

The following questions concern audit sampling. Choose the best response.
a. An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor
(1) minimize the failure to detect errors and fraud.
(2) eliminate the risk of nonsampling errors.
(3) design more effective audit procedures.
(4) measure the sufficiency of the audit evidence by quantifying sampling risk.
b. Which of the following best illustrates the concept of sampling risk?
(1) The documents related to the chosen sample may not be available to the auditor for inspection.
(2) An auditor may fail to recognize errors in the documents from the sample.
(3) A randomly chosen sample may not be representative of the population as a whole
for the characteristic of interest.
(4) An auditor may select audit procedures that are not appropriate to achieve the specific objective.
c. For which of the following tests would an auditor most likely use attributes sampling?
(1) Selecting accounts receivable for confirmation of account balances.
(2) Inspecting employee time cards for proper approval by supervisors.
(3) Making an independent estimate of the amount of a LIFO inventory.
(4) Examining invoices in support of the valuation of fixed asset additions

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