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    Statistical sampling vs. nonstatistical sampling

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    Which is better, statistical sampling or nonstatistical sampling? Why?

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    In nonstatistical sampling, the auditors estimate sampling risk by relying on professional judgment. The severe limitation of nonstatistical sampling is that it does not allow the auditor to make a quantitative estimate of sampling risk. An example of nonstatistical sampling is block sampling where auditors select a few days, weeks, or months from the population. The auditor assumes the sample time periods are representative of the entire population. By not taking sample transactions over the entire audit period, block samples ...

    Solution Summary

    The solution discusses the pros and cons of statistical sampling vs. nonstatistical sampling.