What sampling tools and techniques will be used for the examination? What analytical and inferential tools will be used to evaluate accounting evidence?
The auditor will gather evidence in one of three ways:
(1) Select all items In the population
(2) select specific items of interest (for instance, all checks written to related parties or lawyers) in the population or
(3) use audit sampling to select a sample of items in the population.
Audit sampling is the selection and evaluation of a sample of items from the population. The auditor expects the sample to be representative and so will extrapolate the results of the sample to the wider population of transactions and balances. In other words, the sampling outcome is the evidence and it will be used to arrive at a conclusion about the full population (inference).
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