5: Sampling

Question 1

What is sampling

Answer 1

A technique that is used when it’s not feasible to test an entire population transactions

Question 2

What is the objective of sampling

Answer 2

To select a portion of a population so that the characteristics observed will reflect the characteristics of the entire population.

Question 3

Statistical Sampling or non-judgemental sampling

Answer 3

The IS auditor uses a technique of random selection that will statistically reflect the entire population.

Question 4

Nonstatistical sampling or Judgmental sampling

Answer 4

The IS auditor judgmentally and subjectively selects sample based on established criteria such as risk or materiality

Question 5

Attribute sampling

Answer 5

A technique used to study the characteristics of a given population to answer the questions “how many”.

Question 6

What sampling leads to attribute sampling

Answer 6

A statistical sampling

Question 7

Variable sampling

Answer 7

A technique used to statistically determine the characteristic of a given population to answer the question”How much”

Question 8

Stop-or-go sampling

Answer 8

This technique is used to permit sampling to stop at the earliest possible time.

Question 9

Discovery sampling

Answer 9

This technique is used when an IS auditor is trying to find at least one exception in a population.

Question 10

Stratified sampling

Answer 10

Here, the event population will be divided into classes, or strata, based upon the value of one of the attributes.

Question 11

Confidence coefficient

Answer 11

Known as the reliability factor or confidence level- it’s expressed as a percentage, as the probability that the sample selected actually represents the TRUE VALUE of the entire population. A confidence coefficient of 95% is considered high.

Question 12

sampling risk

Answer 12

sampling risk = 1 - Confidence coefficient

Question 13

precision

Answer 13

This represents how closely the sample represents the entire population.

Question 14

Low, high precision, small sample

Answer 14

A low precision figure means high accuracy.
A high precision figure means low accuracy.
A smaller sample makes the precision higher,and the risk of exceptions in the entire population is higher.

Question 15

statistical vs non-statistical sampling

Answer 15

Statistical sampling is objective

Non-statistical sampling is subjective

Question 16

Attribute sampling vs Variable sampling

Answer 16

An attribute sampling is simple, variable sampling contains more information that attributes data.

Question 17

Stop or Go sampling vs Discovery sampling

Answer 17

Stop and go is used when auditor believes that very few errors will be found.

Discovery sampling is used when the objective of the audit is to discover fraud or other irregularities.