Which of the following activities is least likely to result in the audit team\'s

ID: 2513927 • Letter: W

Question

Which of the following activities is least likely to result in the audit team's exposure to sampling risk?

A. Identifying all components of a client's accounts receivable balance.

B. Determining the appropriate number of components of a client's accounts receivable balance for confirmation.

C. Selecting components of a client's accounts receivable balance for confirmation.

D. Evaluating confirmations returned from the client's customers and following up on any discrepancies noted by the customers.

The correct answer is A - Identifying all componentss of a client's account receivable balance.

Since all the components are identified, no sampling is involved in this case. HWereas, in other cases there is some exposure to sampling risk.

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