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CISA Uses a risk-based audit approach Practice Question
An organization uses a risk-based audit approach. For a high-risk area, the auditor decides to perform 100% testing instead of sampling. Which of the following is a valid reason for this decision?
⚠ Common exam trap
Watch out — candidates often confuse 'high risk' with 'need for more testing' and incorrectly choose limited time or automated controls, but the key is that 100% testing is only practical and justified when the population is small and errors are critical.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The population size is small and errors are critical
When a high-risk area is identified and the population size is small, 100% testing is justified because the cost of missing a critical error outweighs the cost of testing every item. This approach eliminates sampling risk entirely, ensuring that all errors are detected. In audit, 100% testing is appropriate when the population is small enough to make full examination feasible and the consequences of error are severe.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The population size is small and errors are critical
Why this is correct
100% testing is justified for small populations with high severity risks.
- ✗
The auditor has limited time
Why it's wrong here
Limited time typically leads to sampling, not 100% testing.
- ✗
The tolerable error rate is high
Why it's wrong here
High tolerable error rate would allow a smaller sample, not 100% testing.
- ✗
The control is automated and always effective
Why it's wrong here
If control is always effective, testing may be reduced, not expanded.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.