In an audit of billing practices, which statement about sampling is INCORRECT?

The assertion that a large sample is unnecessary with low variability is incorrect because the size of the sample often depends not just on variability, but also on the level of confidence and precision desired in the audit results. Even in situations where low variability exists, a larger sample may still be essential to ensure that the findings are statistically significant and generalizable to the population being assessed. Valid sampling techniques typically account for the desired confidence level, which may necessitate a larger sample size to ensure the results are robust and reliable.

In the context of billing practices, using appropriate sampling is critical for deriving accurate conclusions about compliance or capturing potential errors. Although low variability might suggest a smaller sample could suffice, relying solely on this factor risks inadequate assessment and could overlook discrepancies that may arise in a broader review of practices. Thus, understanding the interplay between sample size, variability, and the goals of the audit is crucial for effective compliance auditing.