hardMultiple Choice
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
When the population is small, sampling offers little coverage advantage, and critical errors mean even one undetected misstatement is material. Full population testing eliminates sampling risk entirely, giving the auditor complete assurance in this high-risk area.
- ✗
The auditor has limited time
Why it's wrong here
Limited time constrains audit scope and pushes toward sampling, the opposite of expanding to 100% testing. It is tempting because time pressure shapes audit planning, but it cannot justify more work; the decision stems from high risk and the need to eliminate sampling risk entirely.
- ✗
The tolerable error rate is high
Why it's wrong here
A high tolerable error rate means the auditor can accept greater deviation, which supports reduced sample sizes rather than 100% testing. It is tempting because tolerable error is central to sampling decisions, but the direction runs opposite: low tolerable error drives full-population testing.
- ✗
The control is automated and always effective
Why it's wrong here
An automated control being always effective removes the need for exhaustive testing, since the auditor can rely on the automation's consistent operation. It is tempting because automation reduces human error, but that reliability justifies less testing, not testing every item; the stem's high-risk rationale is what drives 100% coverage.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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