$1.$ Auditing standards provide general guidance to auditors regarding audit sampling but do not

require statistical versus nonstatistical sampling or specify which sampling method auditors

should use. Locate the PCAOB$$s auditing standard related to sampling and refer to the standard

to answer the following questions:

a$.$ What are the costs and benefits of using statistical sampling versus nonstatistical

sampling?

b$.$ What is the relationship among audit risk, sampling risk, and nonsampling risk?

c$.$ Auditors utilize sampling for both tests of controls and substantive procedures. When

is sampling not an appropriate method of performing tests of controls?