A Supervisor was reviewing a particular case that was completed by an auditor and

noticed that the sample selected by the auditor contained units that operated

in only three of the twenty jurisdictions for which the licensee reported

miles. After calling the auditor in to discuss the case, the following is the

conversation between the Supervisor and the auditor:

Supervisor: The sample units you selected are not

representative and therefore would not be in compliance with IFRS

Auditor: I selected my sample from the three

different months all of which are representative months of operation for the

entire audit period. The licensee agreed with the test sample and results of

the audit.

Supervisor: I agree that the sample months you

used to select your test sample vehicles appear to be representative months,

but the actual test sample itself is not representative and therefore we will

be in violation of the IFRS.

Auditor:

Not every return included twenty jurisdictions and the majority of miles

traveled by the licensee were within the three jurisdictions included in my

test sample. Since the sample periods were representative and since the

majority of miles accrued by this licensee were tested, I believe that we are

in compliance with the IFRS

Do you agree or disagree with the auditor's statement? Why or why not?