Explain the Concept of Audit Sampling ?

Expert Solution

A sample is defined as a smaller set of data that a researcher selects from a larger population by using a pre-defined selection method.

Audit sampling is an application of audits in which less than 100% of the total items within the population of items are selected to be audited.It act as a tool for investigating. It is about sampling without having to check all of the items within financial statements. The process of audit sampling begins with the preparing the audit plan,then selecting methods for achieving those objectives and selecting data on which sample is to be taken and then auditor needs to perform the audit procedures only on those items that have been selected.If any exceptions is found after the sampling the auditor is required to mark it for further assessment.it is time efficent as the sample consider only few items and Is based on predetermined objectives.It is process based that enables auditors to make conclusions and express fair opinions based on predetermined objectives.There are two type of audit sampling that is commonly used by auditors statistical audit sampling and non-statistical audit sampling.The main aim of such sampling is to detect errors on the basis of evidence recieved on selected items.

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