Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 61

If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

Answer options

• A. The experience and knowledge of the auditor.
• B. The adverse consequences of noncompliance.
• C. The acceptable level of risk of making an incorrect audit conclusion.
• D. The cost of performing auditing procedures on sample selections.

Correct answer: A

Explanation

The experience and knowledge of the auditor should not affect the allowable level of sampling risk, as the sampling risk is determined by the inherent characteristics of the audit rather than the auditor's background. In contrast, the other factors, such as the consequences of noncompliance, acceptable risk levels, and costs, directly influence the risk assessment and decision-making process in auditing.