Assertion (A): Audit sampling involves applying audit procedures to less than 100% of items within a population. Reason (R): Audit sampling eliminates the risk of drawing a false conclusion about the entire population. Choose the correct option.
A. A is true but R is false
B. A is false but R is true
C. Both A and R are true and R is the correct explanation of A
D. Both A and R are true but R is NOT the correct explanation of A
Answer: Option A
Solution (By JKSSB Mock Tests)
A is true as per SA 530. R is false because audit sampling inherently carries sampling risk, meaning it cannot completely eliminate the risk of drawing a false conclusion.
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