Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

The primary purpose of employing statistical sampling in auditing is to generalize findings to the entire population. This approach allows auditors to select a representative sample from a larger population and then make inferences about the population based on the results obtained from that sample. Statistical sampling enables auditors to estimate the characteristics of the entire population with a known level of confidence, which is crucial for forming conclusions regarding the accuracy and reliability of financial statements.

This method is particularly valuable in situations where examining every single item in the population is impractical due to time, cost, or other constraints. By using statistical techniques, auditors can effectively project the results from the sample to the population, ensuring that their conclusions are well-founded and representative.

While identifying all errors, reducing sampling error, and streamlining the auditing process are important considerations in the practice of auditing, they do not capture the essence of the main objective of statistical sampling. The focus remains on making reliable inferences about the entire population based on the analysis of a smaller subset.