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Sampling Methods and Audit

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How will the different methods affect the audit?

Matched Random Sampling -

Cluster Sampling -

Stratified Sampling

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https://brainmass.com/business/auditing/sampling-methods-and-audit-147106

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The response addresses the queries posted in 929 words with references.

//Before writing about the different methods of sampling, which affect the audit, it is crucial to gain knowledge about 'Sampling'. One should know about the main concept of sampling, which further will assist in analyzing its impact on audit, in an effective manner.//

Introduction:

Sampling provides the knowledge of the population through selection of an individual, observation and interpreting the results. The results of the interpretation are useful in taking certain decisions. Sampling has seven phases, first is to define the problem. It is essential to understand the root cause of the results. In simple terms, reason for the outcome is studied. Sampling frame is set to measure the element of the population as it is not possible to include every item for the sampling (Kothari, 2005) Sampling frame has some specifications which allow including all the related elements. In setting the frame, various issues as political and technical are taken into account.

In the third phase, sampling method is selected. Various methods are quota sampling, stratified sampling, cluster sampling, random sampling. Sampling method is finalized to select the events from the sampling frame. In the sampling, it is necessary to understand the population causing the variance. After determining the sample size, implementation of sampling plan is conducted. Data is collected in the time limitations and non responses are recorded. Finally, in the last stage, sampling ...

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