Sampling

Sampling

1. Non-probabilistic Sample Selection Methods

   • Haphazard sample selection
     • + Human attempts at being random + Selection of items without any conscious bias
     • Most commonly used
   • Block sample selection:
     • Auditor seclects a sequence of items
     • Most qppropriate for testing completeness / cutoff
   • Directed/judgemental sample selection:
     • Selection of items based on some judgmental criteria established by the auditor.

2. Probabilistic Sample Selection Methods

   • Random selection:
     • Simple random sampling used when populations are not segmented.
     • Most appropriate for testing across the entire year
   • Systematic sample selection:
     • Calculated interval is used to select sample items + randomly selected start point
   • Probability proportional to size:
     • Probability of selecting any item is proportional to its recorded amount.
   • Stratified sampling:
     • + Population is divided into subpopulations. + Not technically a sampling method
     • When you want to treat/investigate sub-groups differently