It is important to recognize that audit sampling may be constructed on a nonstatistical basis. If the auditor uses statistical sampling, probability theory will be used to determine sample size and random selection methods to ensure each item or GHc1 in value of the population has the same chance of selection. Non-statistical sampling is more subjective than statistical sampling, typically using haphazard selection methods and placing no reliance on probability theory. However, in certain circumstances statistical sampling techniques may be difficult to use. The auditor will review the circumstances of each audit before deciding whether to use statistical or non-statistical sampling a. Describe to what extent statistical sampling enhances the quality of the audit evidence. b. Explain how judgement is used in statistical and non-statistical sampling c. Explain what you understand by the following terms: (i) Random sampling (ii) Monetary unit sampling.
It is important to recognize that audit sampling may be constructed on a nonstatistical basis.
If the auditor uses statistical sampling, probability theory will be used to determine sample size
and random selection methods to ensure each item or GHc1 in value of the population has the
same chance of selection. Non-statistical sampling is more subjective than statistical sampling,
typically using haphazard selection methods and placing no reliance on probability theory.
However, in certain circumstances statistical sampling techniques may be difficult to use. The
auditor will review the circumstances of each audit before deciding whether to use statistical
or non-statistical sampling
a. Describe to what extent statistical sampling enhances the quality of the audit evidence.
b. Explain how judgement is used in statistical and non-statistical sampling
c. Explain what you understand by the following terms:
(i) Random sampling
(ii) Monetary unit sampling.
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