After the sample is identified, the auditor determines if a 100 percent audit was feasible, or whether statistical sampling is employed.

After the sample is identified, the auditor determines if a 100 percent audit was feasible, or whether statistical sampling is employed.

• A. The sample is discarded and a new sample is drawn.
• B. Whether a 100 percent audit was feasible or whether statistical sampling is employed.
• C. The budget for the audit.
• D. The audit conclusions are written.

Answer: (B)

The main idea being tested is the planning decision about how to conduct the testing: whether a full, 100% audit is feasible or whether statistical sampling will be used to draw conclusions about the whole population. If auditing every item is practical within time and cost constraints, a complete audit provides the most assurance because no items are left unchecked. If a full audit isn’t feasible, the auditor relies on statistical sampling to estimate the population characteristics with a defined level of confidence, balancing both efficiency and assurance. This choice is made during planning and depends on factors like risk, materiality, and resource limits. The other options don’t fit this stage: choosing to discard and redraw a sample isn’t a standard next step once sampling is in place, budgeting is a planning detail not the testing approach, and writing audit conclusions happens after testing is complete.

The main idea being tested is the planning decision about how to conduct the testing: whether a full, 100% audit is feasible or whether statistical sampling will be used to draw conclusions about the whole population. If auditing every item is practical within time and cost constraints, a complete audit provides the most assurance because no items are left unchecked. If a full audit isn’t feasible, the auditor relies on statistical sampling to estimate the population characteristics with a defined level of confidence, balancing both efficiency and assurance. This choice is made during planning and depends on factors like risk, materiality, and resource limits. The other options don’t fit this stage: choosing to discard and redraw a sample isn’t a standard next step once sampling is in place, budgeting is a planning detail not the testing approach, and writing audit conclusions happens after testing is complete.