It is hard to believe that auditing standards could differ on something that is as seemingly objective as sampling. However, like many things in auditing, there is often considerable leeway around what is right or wrong (that is why professional judgment is so important). Canadian and PCAOB (Public Company Accounting Oversight Board) standards differ significantly on the treatment of anomalies. The PCAOB audit standards indicate that all errors should be projected to the population. However, Canadian auditing standards indicate that in rare cases, anomalous errors do not need to be projected when the auditor is able to obtain evidence that a misstatement (or deviation) is not representative of the population (CAS 530.13).

REQUIRED
Explain the impact of the two different approaches on audit effectiveness.