Question

what are the difference between statistical sampling and non statistical sampling?

Answer 1

Answer:

Statistical Sampling: Statistical Sampling refers is an approach to sampling where the sample has been selected using probability theory & other mathematical terms. Under the statistical sampling, the sample is chosen randomly using the probability theory

Non-Statistical Sampling: Under non-statistical sampling sample, size & composition are determined on the basis of personal experience & knowledge of the auditor. it does not include probability theory for the selection of samples.

Difference between statistical sampling and non-statistical sampling:

• Statistical sampling uses the probability theory in the selection of samples while non-statistical sampling is based on the knowledge & experience of the auditor.
• Statistical sampling is a scientific method & hence sample selection is more objective & thereby more defensive for the auditor while in case of non-statistical sampling it may be not more defensive as it may be biased as in this approach personnel judgment of auditor is involved.
• Statistical sampling provides a more reliable sample in comparison to non-statistical sampling.
• Statistical sampling is useful when the concerned person have the knowledge of the probability & other mathematical terms while in case of non-statistical theory knowledge of probability theory & other mathematical terms may not be required.
• Statistical sampling is more useful where a large number of transactions are required to be tested while non-statistical sampling is useful where a large number of transaction not required to be tested