Which sampling method should the auditor select?

The auditor reviews the AML compliance program and after a walk-through, determines that AML-related reports to the board could be useful to test the governance and management oversight. The AML reports vary in content and complexity.

Which sampling method should the auditor select?
A . Risk-based
B . Judgmental
C . Statistical
D . Proportional

View Answer

Answer: B

Explanation:

Appropriateness of Judgmental Sampling:

Judgmental sampling is optimal when variability in report content and complexity necessitates the auditor’s discretion to select the most informative samples.

Guideline Support:

Basel and FATF emphasize auditor judgment in situations requiring qualitative evaluation of governance reports.