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.
Explanation / Answer
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.