HCCA Basic Academy Practice Exam 2025 – The Complete All-in-One Guide to Master Your Certification!

Statistical sampling in auditing is characterized by the random selection of items from a population, ensuring that every member has an equal chance of being included in the sample. This method is important because it provides a scientific basis for evaluating the population, reducing bias, and allowing the auditor to apply statistical techniques to estimate the characteristics of the entire population based on the sample. By employing random selection, auditors can also make valid inferences about the overall population, which is critical in assessing risks and determining whether the financial statements are free from material misstatement.

In contrast, the other options do not align with the principles of statistical sampling. Relying solely on the auditor's judgment or preferences lacks the objectivity that random sampling provides and can lead to biased outcomes. Additionally, examining samples based on historical performance does not inherently ensure that every member of the population has an equal chance of being selected, which is crucial for the integrity of statistical sampling. Therefore, the correct definition focuses on the randomness and equal probability of selection that statistical sampling embodies in auditing practices.