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    Article: Audit Sampling (boon to auditors)

    http://www.caclubindia.com/articles/audit-sampling-boon-to-auditors--9014.asp.

    © BrainMass Inc. brainmass.com October 4, 2022, 4:58 pm ad1c9bdddf
    https://brainmass.com/business/auditing/audit-sampling-technique-425161

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    Article: Audit Sampling (boon to auditors)

    http://www.caclubindia.com/articles/audit-sampling-boon-to-auditors--9014.asp

    Auditors are not expected to test all the information available to them because it is not feasible and it is also not economical to do so. Instead auditors use sampling techniques to form conclusions. These sampling techniques do not deem 100% testing of all items within a population. Only in cases where the sample size is small 100% testing can be done. Sampling enable auditors to reduce the risk of over-auditing and as a result much more efficient review of existing information is possible at the review stage of the audit. However, auditors have to be careful in selecting samples such that they represent the entire population. There are various factors which affect the selection of the sample, which have been mentioned in the article. If this care is not taken, there could be sampling risk in the procedure which could affect the audit results.

    The article mentions judgmental and statistical as two major methods of sampling. In judgmental sampling, sampling is based on past experiences of auditor whereas in statistical sampling, mathematical techniques are used. Various sampling methods are listed along with examples to facilitate understanding. These methods are simple random sampling, stratified sampling, block sampling, and cluster sampling.

    To conclude, the article provides relevant information but does not indicate which method should be used in which situation.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com October 4, 2022, 4:58 pm ad1c9bdddf>
    https://brainmass.com/business/auditing/audit-sampling-technique-425161

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