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Statistics, sampling and audits

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1) Can an audit be done without using sampling?

2) What is the benefit to using statistical vs. random sampling to the auditor?

3) What types of statistical sampling techniques used in auditing are attribute sampling and variables sampling?

Attribute sampling is used in tests of controls to estimate the rate of deviations from prescribed controls in a population. Variables sampling is used in substantive tests to estimate the total dollar amount of a population or the dollar amount of error in a population.

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Solution Summary

This solution discusses audit sampling, statistical sampling, random sampling, and related issues.

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1. An audit can be done without sampling, although it is rare. The purpose of sampling is to use a reliable method of testing so that the auditor does not have to test 100% of every population, for every account on the books. By using a sample, we can generate accurate audit evidence in a time-saving manner. If the client is a small company and ...

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