Audit Sampling

Question 1

What is Audit Sampling?

Answer 1

Application of audit procedures to less than 100% of items within account balances of population, to enable the auditor to form an opinion on the whole population

Question 2

Audit Sampling

Answer 2

Can be Statistical & Non-statistical

Question 3

What is systematic sampling?

Answer 3

Calculated by the number of items in the population or the desired sample size (Statistical approach)

Question 4

What is block sampling?

Answer 4

Use a block of consecutive items in the population
Selected statistically or non-statistically

Question 5

What is random sampling?

Answer 5

It’s a statistical approach where items are randomly selected using random numbers tables or computer software

Question 6

what is “haphazard” sampling?

Answer 6

It’s a non-statistical, non-structured approach

Question 7

What do we need to do first when using systematic sampling?

Answer 7

Identify the first 3 invoices

Question 8

How do we calculate population in systematic sampling?

Answer 8

Last Invoice in the range - First invoice in the range

Question 9

How do we calculate intervals in systematic sampling?

Answer 9

Population / Sample size

Question 10

How do we calculate the starting point in systematic sampling?

Answer 10

First invoice in the range + Starting point

Question 11

How do we calculate the rest of the invoices in systematic sampling?

Answer 11

Total Starting point + Invoice #2 + Invoice #3 = xxx