CPAs may decide to apply nonstatistical or statistical techniques to audit testing.

List and explain the advantages of applying statistical sampling techniques to audit testing.

List and discuss the decisions involving professional judgment that must be made by the CPAs in applying statistical sampling techniques to tests of controls.

You have applied attributes sampling to the client's pricing of the inventory and discovered from your sampling that the sample deviation rate exceeds your tolerable rate. Discuss the courses of action you take.