AUDIT SAMPLING

AUDIT SAMPLING

1. Definition

   • application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.

2. Purpose

   • allows auditor to draw conclusion and decision making process

3. Type

   • Statistical
   • Non-statistical

4. Statistical Sampling

   • laws of probability theory to assist the auditor
   • Direct sample selection
   • haphazard sample selection
   • Block sample selection

5. Non statistical Sampling

   • solely based on the auditor’s judgment
   • simple random sample size
   • systematic sample selection
   • probability proportional
   • stractified

6. Sampling risk

   • incorrect opinion by auditors when auditing