An IS auditor attempts to sample for variables in a population of items with wide differences in values but determines that an unreasonably large number of sample items must be selected to produce the desired confidence level.
In this situation, which of the following is the BEST audit decision?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
When an IS auditor attempts to sample for variables in a population of items with wide differences in values, it may not always be possible to select a reasonable sample size while maintaining the desired level of confidence. In this scenario, the IS auditor must make an audit decision that optimizes the balance between audit effort and the accuracy of results.
Option A: Allow more time and test the required sample This option suggests that the IS auditor should spend more time testing the sample to achieve the desired level of confidence. However, this decision may not be feasible or practical due to time constraints or other limitations.
Option B: Select a judgmental sample A judgmental sample is a non-random sample that is selected based on the auditor's judgment or discretion. While this method can be useful in certain situations, it may introduce bias and limit the generalizability of the results.
Option C: Select a stratified sample A stratified sample is a random sample that is partitioned into homogeneous subgroups or strata. This method can be useful when there are wide differences in values within a population, as it allows the auditor to select samples from each stratum to ensure that the sample is representative of the population. This option is, therefore, the best choice.
Option D: Lower the desired confidence level Lowering the desired confidence level may result in a smaller sample size, but it also reduces the level of confidence in the results. This option is not ideal as it compromises the accuracy and reliability of the audit.
In conclusion, the best audit decision in this scenario is to select a stratified sample, which allows the auditor to select samples from each stratum to ensure that the sample is representative of the population while maintaining the desired level of confidence.