Key CPA Exam Takeaways

High-Yield Review

• Audit sampling tests less than 100% of a population.
• Statistical sampling measures sampling risk mathematically.
• Nonstatistical sampling relies on professional judgment.
• Sampling risk decreases as sample size increases.
• Attribute sampling evaluates controls.
• Variables sampling evaluates monetary balances.
• Strong internal controls may reduce required sample sizes.
• Data analytics analyzes large datasets to identify unusual transactions and risks.
• Data analytics supplements but does not replace professional judgment.

Better data leads to better audit decisions—but only when combined with professional judgment.