Question

In the practice, the sample method selection which is used by auditor is:

Select one:

a.

Simple random selection

b.

Block sample

c.

Systematic sample

d.

Probability sample

Answer 1

Audit Sampling is an audit procedure used to identify the transactions and the events which are necessarily to be checked and audited by the auditor. Sampling refers to identifying and checking of less than 100% of the population assuming that the entire population will give more or less same effect as the sample selected. However it will depend on the method of sampling used and its criteria of evaluation.

The sampling in audit is required when there are large number of transactions and checking all of them is neither posiible nor feasible. The auditors are allowed to use the lots of standard as per the data and the condition like random sampling , block sampling, cluster sampling, systematic sampling , but the auditor in most of the cases practically uses the systematically sampling as it has an edge over other methods.

Simple random sampling is the sampling method in which the random samples are taken from the entire polulations it is theoritically one of the best efficient method as random selection will have 100% chance to all type of data selection but it sometimes leads to inefficiency due to its long time taking process and inefficient.

Block sampling on other hand gets the entire populations devided in various blocks and then selecting consecutive series of samples, however there is a risk that the block of item will not reflect the features of entire populations it will restrict to specific block only, so this is not used much.

Probability sampling on other hand means that every member of the population has a chance of getting selected. It involves the using of random sampling so the simple random sampling , systematic sampling and stratified sampling are the part of the probility sampling.

Here the systematic sampling is the upgraded form of random sampling which is more efficient and simple as in this the selections are taken from the population at fixed intervals, here instead of using the random numbers the samples are selected at regular intervals which is the most preferable sampling method used by the auditors.

Thus the correct option is -----------C i.e Systematic Sampling.