Question

There is a considerable difference of opinion among auditing practitioners about the most appropriate method of audit sampling. Some believe the only appropriate method is statistical sampling. Others believe that because of the large number of judgements required in statistical sampling auditors may as well use judgmental sampling. Find an article that discusses the use of sampling in auditing. Based on the article and readings in your textbook which side of this debate do you agree with, and why?

Answer 1

Let us first discuss both the methods of audit sampling.

Statistical sampling is the sampling method in which random sampling is used for selecting items from total population and then using the probability technique for finding results and concluding.

It helps in controlling the risks of an audit. Thus is because of salection of data randomly without any biassness or pre judging data. This method is used when the total population among which sample is to be selected is more than 100.

Also to reach on conclusions, tests are being run on these randomly selected data and then result is decided.

Now, moving to judgmental sampling, it is also called as non statistical sampling. Here, the data for sampling is not selected randomly rather they are judged before being selected. Like the items could be selected on the basis of highest yields or lowest costs etc. This the result of testing is not used for concluding the nature of the population bacause it would not be fair to do so.

So we have seen both the methods of sampling. After reading about both the methods of sampling I reach to the conclusion that both the methods have their own significance. If any particular trend is needed to be tested, audit has to use judgmental sampling otherwise he would be using the statistical sampling. Also the sample size makes the difference in the me this being used.

So there are different criteria for selecting the method of sampling. This is dependent of the auditor as to which method is more suitable.

Hence its wrong to say about any one meykfd that it should not be used in making sapling audit. In fact according to the needs, the sampling method should be used accordingly.