Module E + F Flashcards
Population
Entire group of items about which conclusion is desired in
Sampling application
Sampling
Process of making a statement about a population of interest
Based on examining only a subset (or sample) of that population
Sample
Subset of items drawn from population of interest
Example with sampling, population and sample
Sampling = taking an election poll Population = eligible voters
Sample = voters responding to pollster’s inquiries
Surveying every eligible voter is…
Not cost effective
What are the 2 major stages in an audit when sampling is used?
1 evaluating a client’s internal control
2 conducting substantive procedures
Sampling is typically used when the question of interest has what 2 characteristics?
1 need for exact information is not important
2 number of items comprising the population is large
Sampling trades effectiveness for…
Efficiency
Sampling is used when the gains associated with efficiency exceed…
The losses associated with effectiveness
Sampling risk
Likelihood that the decision made based on the sample
differs from the conclusion that would have been made if entire
Population had been examined
When decisions made based on sample differ from decisions
That would be made if the entire population had been examined…
Sampling error has occurred
How is a sampling error caused?
When sample drawn from population does not appropriately
Represent that population
Sampling risk is the likelihood of…
Sampling error
No representative sample
Sample that differs substantially on 1 or more key characteristics
Of interest from population where sample is drawn
3 major steps to control sampling risk to very low levels
1 determining appropriate sample size
2 ensuring all items have equal opportunity to be selected
3 evaluating sample results to control sampling risk
Controlling sampling risk: determining an appropriate sample size
As higher percentage of items in population is examined,
Sampling risk decreases
Controlling sampling risk: ensuring that all items have an equal opportunity to be selected
If items have equal opportunity of being selected, sampling risk
Decreases
Controlling sampling risk: evaluating sample results to control sampling risk
Results from sample are “adjusted”
to consider likelihood that the sample being evaluated doesn’t
appropriately represent the population
In an audit, sampling risk arises from…
Use of a nonrepresentative sample
Non sampling risk
probability that an incorrect conclusion will be reached
As result of reasons unrelated to the nature of the sample
No sampling risk typically occurs because of…
Errors in judgement or execution
Example of non sampling risk
If engagement team incorrectly measures the yardage, the sample
Average will be incorrect
And can result in inappropriate conclusion
In nonsampling risk, error is not caused by nonrepresentative
sample but by…
An evaluator error
In an auditing context, nonsampling error arises when auditors use…
An inappropriate procedure or misinterpret evidence they have
Obtained
Statistical sampling plans
Apply the laws of probability to selecting sample items for
Examination and evaluating Sample results
Control sampling risk and help gather appropriate evidence
Non statistical sampling plan
Does not apply the laws of probability to choose representative
Items for examination and evaluate the results
Does not allow an individual to control exposure to sampling risk
When do nonstatistical sampling plans make sense?
When dealing with a few individuals who have the largest accounts
Does GAAS require statistical sampling procedures?
No
What do auditors use more often statistical procedures or nonstatistical sampling procedures?
Nonstatistical sampling procedures
3 general stages of a sampling plan in order
1 planning
2 performing
3 evaluating
3 steps of planning when implementing a sampling plan
1 determine objectivity of sampling
2 define the characteristic of interest
3 define the population
3 steps of performing when implementing a sampling plan
1 determine the sample size
2 select the sample items
3 measure the sample items
1 final step of evaluating when implementing a sampling plan
Evaluate the sample results
determining the objective of the sampling application
Define with example
Directly related to question of interest
Ex. Doe wilsons golf balls increase distance?
Characteristic of interest
Define, example
Measure that will be obtained from sample items and eventually evaluated against some Criterion
Ex. Increase in distance (of golf ball)
Population example
Amateur golfers in the world
Important factor in determining sample size
Acceptable level of sampling risk
Example of selection of sample items
Select 50 amateur golfers
4 methods that can be used to select a sample
1 unrestricted random selection (random selection)
2 systematic random selection (systematize selection)
3 haphazard selection
4 block selection
Unrestricted random selection (random selection)
Audit team identifies series of random numbers from either a
Random number table or computer program
Selects the numbered item in corresponding population
Unrestricted random selection (random selection) example
Ex. If team identified 120, 268 and 341 from a computer program,
They would identify the 120th, 268th and 341st golfers from
Prenumbered listings for test
Systematic Random Selection (Systematic Selection)
Audit team randomly selects starting point from within the
Population and chooses the nth item thereafter
n is determined based on number of items in population
Sampling interval
2) What is it represented by?
Frequency with which items are selected
2) represented by n
How is a sampling interval calculated?
sampling interval = Items in Population/sample size
Limitation of systematic selection
Population must be randomly ordered
Haphazard selection
Items are selected in an unstructured manner, without any
Intentional bias
Ex. Identify items (golfers) as they arrive at the clubhouse, flip
Through roster from clubhouse until 50 golfers selected
Significant limitation of haphazard selection
Sampling method can’t be described in sufficient detail to permit
Another individual to replicate it
Block selection
Selecting a series of contiguous (or adjacent) items from the
population
Why is block selection less desirable?
It is difficult to efficiently obtain a representative sample
3 reasons why random or systematic selection is used with statistical sampling
1 provide sufficient likelihood of obtaining representative sample
2 allow probability of obtaining sample items to be determined
3 allow sample selection process to be replicated
Random or systematic selection allow sampling risk to be…
Measured and controlled to acceptable levels
In practice, computer software has greatly increased the…
Efficiency and effectiveness of selecting sample items
What selection method for sampling do auditors use most of the time?
Haphazard selection (a nonstatistical form of selection)
Example of measure the sample items
Ex. Having each golfer hit Wilson’s golf balls and compare the
Distance to a competitor’s golf balls
Evaluate sample results:
Precision AKA Allowance for sampling risk
Numeric distance from the estimated population value in which The true (but unknown) may lie with a given probability
Evaluate sample results:
Reliability AKA Confidence level
Likelihood of achieving a given level of precision
Ex. Reliability is 90%, which is equal to 100% less the acceptable
Sampling risk of 10%
Evaluate sample results:
precision interval
Range around sample estimate that has certain likelihood
(Equal to reliability) of including true population value
For every level of reliability a unique level…
Of precision exists
Audit sampling
Application of an audit procedure to less than 100 percent of items Within an account balance it class of transactions
For purpose of evaluating some characteristic of balance or class
Rate of deviation
Rate at which internal controls are not functioning
The audit team is interested in determining whether the rate at which internal control activities are not functioning (rate of deviation)…
Exceeds some permissible rate by the audit team
Tolerable rate of deviation
Permissible rate by an audit team
Ex. Permissible rate of deviation for internal controls not functioning
Attributes sampling
Rate of deviation exceeds some rate permissible by audit team
When using sampling in substantive procedures, the audit team’s objective is to determine…
Whether an account balance or class of transactions is recorded And presented according to GAAP
Audit sampling: substantive procedures
Audit team is determining whether amount of dollar misstatement In account balance/class of transaction exceeds permissible amount
Permissible misstatement
dollar misstatement In account balance/class of transaction exceeds permissible amount
Attributes sampling
Used when audit team examines a subset of items within a
Population
To determine extent to which a particular attribute exists within
That population
Audit study and evaluation of internal control (attributes sampling):
Objective
Determine whether internal control policies and procedures are
Functioning in preventing or detecting misstatements
Audit study and evaluation of internal control (attributes sampling):
Sampling unit
Instances where control policies or procedures should have been
Applied
Audit study and evaluation of internal control (attributes sampling):
Evaluation
Compare rate of deviation to tolerable rate of deviation
Audit application of substantive procedures (variables sampling):
Objective
Determine whether account balance or class of transactions is Fairly recorded
Audit application of substantive procedures (variables sampling):
Sampling unit
Transactions or components of account balances or classes of
Transactions
Audit application of substantive procedures (variables sampling):
Evaluation
Compare misstatement to tolerable misstatement
The audit team uses attributes sampling in evaluating the effectiveness of the client’s internal controls and assessing…
Control risk
Control risk
Likelihood that client’s internal control policies and procedures
Fail to prevent/detect material misstatement
How auditors decide if they can rely on internal controls:
In the planning stages of the audit, auditors assess control risk at…
A planned level
How auditors decide if they can rely on internal controls:
After planning, They perform tests of controls to determine whether controls are Functioning…
Consistent with planned level of control risk
5 procedures used to assess control risk
1 identify key controls to rely upon
2 make planned assessment of control risk
3 perform test of controls on key controls
4 assess effectiveness of key controls
5 confirm or reassess level of control risk
During the general procedure used by the audit team to assess control risk, when are a sample of controls examined?
Step 3: perform tests of controls on key controls
What step of assessing control risk is based on results of the sample of controls?
Step 4: assess effectiveness of key controls
Ultimate objective in attributes sampling?
Assess control risk
Tolerable rate of deviation (TRD)
Maximum rate of deviation that can exist before auditors reduce
Their reliance on that control
Sample rate of deviation
Number of deviations discovered in sample divided by sample
Size
Upper limit rate of deviation (ULRD)
Measure that adjusts the sample rate of deviation for the audit
Team’s acceptable level of sampling risk
Rate of deviation that has a (1 - Risk of overreliance) probability
Of equaling or exceeding the true population rate of deviation
Upper limit rate of deviation (ULRD) function?
Adjusted rate provides conservative estimate of rate of deviation
That allows audit team to control exposure to sampling risk
If the upper limit rate of deviation is less than or equal to the tolerable rate of deviation, auditors…
Rely on controls as planned and retain assessment of control
Risk at planned levels
If the upper limit rate of deviation is higher than the tolerable rate of deviation, auditors…
Reduce their planned reliance on controls and increase their
Assessment of control risk to higher levels
1) ARD?
2) TRD?
3) ULRD?
1) actual rate of deviation
2) tolerable rate of deviation
3) Upper limit rate of deviation
Risk of underreliance AKA Risk of assessing control risk too high
Likelihood that auditors’ sample will provide evidence that the
client’s controls are not functioning effectively
when they are functioning effectively
Risk of overreliance AKA Risk of assessing control risk too low
Likelihood that auditors’ sample will provide evidence that the
client’s controls are functioning effectively
when they aren’t functioning effectively
Assessing control risk too high exposes auditors to…
2) assessing control risk too low exposes auditors to…
Efficiency loss
2) effectiveness loss
Is the risk of underreliance (risk of assessing control risk too high) or risk of overreliance (risk of assessing control risk too low) of more concern to auditors?
Risk of overreliance (risk of assessing control risk too low) is of more concern
Variable sampling
Used to examine population when auditors want to estimate the
Amount (or value) of some characteristics of population
Used when performing substantive procedures
Detection risk
Risk that auditors substantive procedures (both tests and analytical)
Fail to detect material misstatement
That exists in account balance or class of transactions
Extent of further audit procedures is most closely associated with the use of…
Variables sampling
Detection risk, when is sample sized increased?
With lower planned levels of detection risk
Tolerable misstatement
Level of misstatement auditors are willing to accept during
Performance of substantive procedures
Sample estimate of misstatement
Difference between the recorded account balance and the audited
Account balance
Upper limit on misstatement (ULM)
Amount that has a (1-risk of incorrect acceptance) probability
Of equaling or exceeding
the true amount of misstatement In the population
When the tolerable misstatement is greater than or equal to the upper limit on misstatement, the account balance is…
Not misstated
When the tolerable misstatement is less than the upper limit on misstatement the account balance is…
Misstated
Risk of incorrect rejection
Likelihood that auditors will conclude that the client’s account
Balance is materially misstated when it is when it is fairly stated
Risk of incorrect acceptance
Likelihood auditors will conclude that client’s account balance is
Fairly stated when it is materially misstated
Incorrect rejection causes what for auditors?
Efficiency loss
Risk of incorrect acceptance leads to what for auditors?
Effectiveness loss
Effectiveness loss may subject auditors to…
Litigation if they don’t detect misstatements
Efficiency loss could lead auditors to…
Perform unnecessary procedures
2 Populations used in planning stages for auditors
1 attributes sampling
2 variables sampling
Planning: attributes sampling
All possible applications of controls by client personnel
Planning: variables sampling
All components or transactions comprising of account balance or
Class of transactions
Auditors often perform dual-purpose tests by examining…
Both attributes (controls) and monetary (substantive) misstatements
Example of a dual purpose test on an invoice
Ex. Invoice examined for attribute of credit authorization signature
(Control test)
And monetary misstatement of an incorrect price (substantive test)
4 key factors affect auditors’ determination of sample size
1 population size
2 expected rate or deviation (or expected misstatement)
3 tolerable rate of deviation (tolerable misstatement)
4 auditors’ acceptable exposure to sampling risk
For certain types of variables sampling applications, population variability also affects…
Sample size
Factor: population size
Effect on Sample Size?
Direct, population size increases then sample size increases
Factor: Expected rate of deviation (expected misstatement)
Effect on Sample Size?
Direct, as expected rate of deviation or misstatement increases,
Sample size increases
Factor: tolerable rate of deviation (tolerable misstatement)
Effect on Sample Size?
Inverse, as tolerable rate decreases, sample size increases
Factor: sampling risk
Effect on Sample Size?
Inverse, as acceptable sampling risk decreases, sample size
Increases
Factor: population variability
Effect on Sample Size?
Direct, as variability increases, sample size increases
Population variability is often measured as…
The standard deviation (or standard error of the mean)
Standard deviation AKA Standard error of the mean
Measure of the variability of the population
Once sample size has been determined, auditors…
Select the sample
Consist of important controls or important balances/transactions
After sample items have been selected, auditors…
Perform the appropriate audit procedures and measure each
Item
4 steps in auditing procedure to evaluate sample results
1 identify rate of deviation/or difference btw/ audited values
And recorded values
2 adjust step 1 info to control auditors exposure to sampling risk
3 compare step 2 adjustment to tolerable rate of deviation or
Tolerable misstatement
4 based on step 3 make decision on effectiveness of internal control
Or account balance
Documentation of sampling should…
Be sufficient for audit team to replicate the task
In tests of controls, the attribute (of attribute sampling) is whether…
LAST QUESTION IN MODULE E
A specific control was properly applied by client personnel and
Is appropriately functioning to prevent or detect financial st. misstatements
First step of attributes sampling process (MODULE F)
Identify he objective of attributes sampling
Related to examining key controls corresponding to management
Assertions of interest to audit team
2 examples for determining the objective of attributes sampling (MODULE F)
Occurrence: does the recorded sale represent an actual sale
Made to customers
Accuracy: has the sale been recorded at the proper dollar amount
Step 1: Determining the objective of attributes sampling:
Once relevant assertions have been determined, the audit team then specifies…
2) examples of occurrence and accuracy
(MODULE F)
One or more controls, that if functioning, allow client to meet
Recording objectives related to these assertions
2) occurrence: sales invoices supported by valid shipping Document
Accuracy: sales invoices initiated by client personnel as evidence
Of verification of mathematical accuracy
Deviation AKA Error, occurrence or exception (MODULE F)
Instances where client/it’s personnel don’t follow prescribed
Controls
Instances where controls aren’t functioning as intended
Step 2: defining deviation conditions at the outset is important because deviation conditions provide the audit team evidence regarding…
Operating effectiveness of client’s internal controls
Step 2: defining the deviation control:
Assertion: occurrence
Control: sales invoices are supported by a valid shipping document
What is an example of deviation?
Instance where sales invoice is not accompanies by a shipping
Document
Step 2: defining the deviation control:
Assertion: accuracy
Control: sales invoices are initialed by client personnel as evidence of verification of mathematical accuracy
What is an example of deviation?
Lack of authorized employee initials on sales invoice
Or mathematically incorrect invoice
A deviation does not necessarily indicate that…
An error in processing a transaction has occurred
Population
Set of all items about which a conclusion is desired
Step 3: defining a population in attributes sampling
A population Represents all potential applications of control
Policy or procedure of interest
When defining the population, the audit team needs to determine…
The physical representation of the population
Physical representation of the population AKA Source of the sample
Frame of reference that the audit team uses in selecting the sample
3 possible physical representations for selecting a sample of sales invoices
1 journal list of recorded sales invoices
2 copies of sales invoices contained in a file
3 computerized list of sales invoices
2 primary concerns about physical representation are that its is…
Complete and corresponds to the actual population
Sample size
Represents the number of items the audit team examines
4 main factors that influence the sample size in an attributes sampling application
1 tolerable rate of deviation
2 sampling risk
3 expected population deviation rate
4 population size
Step 4: Determining sample size:
Sampling risk 2
1 Risk of overreliance
2 risk of assessing control risk too low
Tolerable rate of deviation
Maximum rate of deviations permissible by audit team
Without modifying planned assessed level of control risk
In determine the tolerable rate of deviation, what 2 aspects should the audit team consider?
1 planned assessed level of control risk
2 degree of assurance desired by audit evidence in sample
If the audit team wishes to assess control risk at low levels, it seems reasonable to hold the client’s internal control to…
A higher standard
Use lower tolerable rate of deviation
If control risk is high the audit team can use a…
Higher tolerable rate of deviation before reducing reliance on
Internal control
If the audit team requires a high degree of assurance from the test because related accounts are highly materials or because they are not performing additional tests of controls, it makes sense to have a…
Lower tolerable rate of deviation
Sampling risk: Risk of underreliance AKA risk of assessing control risk too high:
Sample results and conclusion
2) Unknown State of the population, conclusion
(Adjusted sample rate of deviation) is greater than (tolerable
Rate of deviation), Conclusion: control is not functioning
2) (Population rate of deviation) is less than or equal to (tolerable
Rate of deviation), conclusion: control is functioning
Sampling risk: Risk of underreliance AKA risk of assessing control risk too high:
Loss
Efficiency loss because additional substantive procedures
Will be performed
Sampling risk: Risk of overreliance AKA risk of assessing control risk too low:
Sample results and conclusion
2) Unknown State of the population, conclusion
(Adjusted sample rate of deviation) is less than or equal to
(Tolerable rate of deviation), conclusion: control is functioning
2) (population rate of deviation) is greater than (tolerable rate
Of deviation), conclusion: control is not functioning
Sampling risk: Risk of overreliance AKA risk of assessing control risk too low:
Loss
Effectiveness loss
Because insufficient level of substantive procedures will be
performed
In an attributes sampling plan, the audit team will control only the exposure to the risk of…
Overreliance in determining the appropriate sample size
How does the audit team assess the acceptable level of risk of overreliance?
This risk depends on planned level of control risk (reflecting
Reliance on client’s internal controls)
As planned level of control risk is lower, it becomes quite important
For the audit team to…
reduce exposure to risk of overreliance
Expected population deviation rate
Some level of deviation occurs in client’s internal control policies
or procedures
Factored in to determining sample size
Expected population deviation rates are initially based on…2
Prior year’s audit
Or on a pilot sample if a first year engagement
For tests of controls and attributes sampling to be used, the expected population deviation rate must be…
Less than the tolerable rate of deviation
Ex. If tolerable rate of deviation is 6%, it makes little sense to invest the time to perform tests of controls if the expected population deviation rate is higher than 6%
If the expected population deviation rate is higher than the tolerable rate of deviation,mother audit team would likely…
Choose to reduce reliance on internal control, increase the
Level of control risk
And conduct more extensive substantive procedures
Allowance for sampling risk AKA Precision
Proximity of sample estimate to the maximum rate of deviation
At a given confidence level
For planning purposes, the difference between the tolerable rate of deviation and the expected population deviation rate can be viewed as a form of…
Planning precision
Once a population reaches a certain size, any increase has…
A minimal effect on sample size
Unless the population size is very small (which is not common for most attributes sampling applications), the audit team does…
No consider population size in determining sample size to a
Great extent
AICPA sampling tables incorporate 4 things
1 risk of overreliance
2 expected population deviation rate
3 tolerable rate of deviation
4 number of deviations audit team can find and still accept controls
Are acceptable
Factor: Tolerable rate of deviation
Determination based on? 2) relationship with sample size
Level of control risk
2) inverse
Factor: sampling risk (risk of overreliance)
Determination based on? 2) relationship with sample size
Level of control risk
2) inverse
Factor: expected population deviation size
Determination based on? 2) relationship with sample size
Prior audits (for recurring engagements) or pilot sample for 1st Engagement
2) direct
Factor: Population size
Determination based on? 2) relationship with sample size
Number of applications of control to transactions
2) direct
1) ROO
2) TRD
3) EPDR
4) n
1) Risk of Overreliance
2) Tolerable Rate of Deviation
3) Expected Population Deviation Rate
4) sample size
The audit team’s basic goal in step 5: selecting a sample is to increase the likelihood that it is…
Representative of the population
Step 5 example: if the audit team is examining a sample of sales invoices, this sample should include sales invoices that… 4 things
1 have been prepared throughout the year
2 represent both large and small dollar amounts
3 prepared by different individuals involved in invoice prep process
4 represent different customers/geographic locations
When measuring sample items (step 6) or in an attributes sampling application, the audit team determines…
2) what is important in this process?
Whether the control has been appropriately performed
2) it’s important the audit team not perform the control, but
Examine some form of evidence that client personnel performed it
In step 6 measuring sample items, if there is no evidence of the control being performed, the item will be classified as…
Deviation
Step 6: measuring sample items: test of controls example:
Assertion: occurrence: sales invoices are prepared only for items shipped to customers
Control: existence of shipping document for all sales invoices
How is the control tested?
Check for existence of shipping document accompanying sales
Invoice
Step 6: measuring sample items: test of controls example:
Assertion: accuracy: extensions and footing on sales invoices are mathematically accurate
Control: existence of initial of client employee indicating mathematical verification
How is the control tested?
Examine invoices for evidence if client employee initial or
recalculation if sample invoices
Measuring sampling items is the step in the sampling process when…
Nonsampling risk can occur
Nonsampling risk
Risk that audit team’s sample provides an incorrect conclusion
For reasons other than the representativeness of the sample
Ex. Audit team makes unintentional error in evaluating evidence
(Fail to recognize initials in document are for appropriate individual)
Step 7 evaluates the results of an attributes sampling application by determining…
The upper limit rate of deviation
Sample rate of deviation, define
Rate of deviations from key controls noted by audit team in
Sample
Sample rate of deviation calculation
Sample rate of deviation = # of deviations noted in sample/sample size
Upper limit rate of deviation
Conservative estimate of population rate of deviation that allows
Audit team to control exposure to sampling risk to acceptable levels
2 pieces of informations the upper limit rate of deviation provides
1 there’s a (1-risk of overreliance) probability that the true population
Rate of deviation is less than or equal to upper limit rt. of deviation
2 there’s a (risk of overreliance) probability that the true population
Rate of deviation exceeds the upper limit rate of deviation
Calculation of allowance for sampling risk
Allowance for sampling risk =
Upper limit rate of deviation - sample rate of deviation
If the upper limit rate of deviation is less than or equal to the tolerable rate of deviation, the audit team should…
Rely on the internal control as planned and maintain control risk
At planned levels
If the upper limit rate of deviation is greater than the tolerable rate of deviation, the audit team should…2
1 reduce reliance on internal control and increase control risk
2 expand the sample size
To support lower levels of control risk the audit team must set a…
Lower tolerable rate of deviation and the sample results must
support lower upper limit rates of deviation
Lower levels of control risk and lower tolerable rates of deviation result in…
A larger sample for tests of controls
Lower levels of control risk are associated with…(what with substantive procedures?)
Smaller samples for substantive procedures
If a key control is not functioning effectively, what 2 choices of action does the audit team have?
1 reduce reliance on the internal control
2 expand the sample to test the control
What 3 things are important to document in the last 3 steps of attributes sampling?
1 number of deviations identified
2 upper limit rate of deviation
3 audit team’s overall conclusion
Fixed sampling plan
Audit team selects and evaluates a single sample
Why might audit team’s use a sequential sampling plan?
2) when is it used?
To provide flexibility and efficiency
2) if they anticipate a low rate of deviation
Sequential sampling AKA Stop and go sampling
Provide audit team opportunity to draw conclusions using
Smaller sample than traditional fixed sampling plan
In sequential sampling if the results are clear and acceptable or unacceptable the audit team can…
2) if the results are inconclusive the audit team can…
Draw its conclusion
2) go forward and examine additional items
Sequential sampling is used when…
The expected population deviation rate is relatively low in relation
To the tolerable rate of deviation
Discovery sampling
Form of attributes sampling used when deviations from controls
Are very critical
Yet expected to occur at relatively low rate
Discovery sampling should be used when…2
1 A control is extremely important to audit team’s examination
2 Audit team expects existence of fraud
When using nonstatistical sampling in auditing, the first 3 steps would be…
Identical to statistical sampling
Non statistical sampling does not make use of tables based on…
Probabilities
Explain how (step 4) determining the sample size for non-statistical is different from statistical sampling
not required to quantify standards for nonstatistical sampling
May set judgementally
Sample sizes under nonstatistical and statistical sampling should be…
Comparable
Explain how (step 5) selecting sample items for non-statistical is different from statistical sampling
May uses nonrandom methods (haphazard or block sampling)
Explain how (step 7) evaluating sample results for non-statistical is different from statistical sampling
Judgementally evaluate sample results based on sample rate of
Deviation and tolerable rate of deviation
