Certified Internal Auditor (CIA) Practice Test

What is a fundamental characteristic of sufficiency in sampling?

1. Extent to which the sample is representative.

2. Size of the sample needed to achieve required assurance.

3. Ability to generalize findings from the sample to the population.

4. Degree of consistency in measurements across samples.

The correct answer is: Size of the sample needed to achieve required assurance.

The fundamental characteristic of sufficiency in sampling refers specifically to the size of the sample needed to achieve the required level of assurance. In the context of auditing, sufficiency is about ensuring that the sample size is adequate enough to draw valid conclusions about the population being studied. This means that the selected sample must provide sufficient evidence to support the audit findings and conclusions to meet the objectives of the engagement. When evaluating sufficiency, auditors consider the inherent characteristics of the population and the degree of assurance needed. A larger sample may be required in situations where the population has greater variability or when a higher level of assurance is necessary. Therefore, determining the appropriate sample size is crucial for the reliability of the audit outcomes. The other options, while relevant to various aspects of sampling, do not address the primary definition of sufficiency. Representativeness, generalizability, and consistency relate more to how samples are constructed and analyzed rather than specifically focusing on the size needed to ensure adequate assurance.