The CAE of HVR Company has asked you to explain the fundamental differences between statistical and...

The CAE of HVR Company has asked you to explain the fundamental differences between statistical and non-statistical sampling in a manner that will help him make an informed decision about the nature of the sampling training that his internal audit staff needs. Explain to the CAE how the two sampling approaches differ with respect to: Sample size determination Sample selection Evaluating sample results

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Differences between Statistical and Non-Statistical sampling

Statistical Sampling	Non-Statistical Sampling
Statistical Sampling means-testing less than 100% of the items in the population for some characteristics and then drawing a conclusion about that characteristic for the entire population.	Non-statistical sampling is the selection of a test group that is based on the examiner's judgment, rather than a formal statistical method.
It involves the use of mathematical laws of probability in determining the appropriate sample size.	It involves the use of personal experience and knowledge of the auditor in determining sample size and its composition.
This approach is more scientific.	This approach is neither objective nor scientific.
The sample results are measurable as to the adequacy and reliability of the audit objectives.	Auditor's opinion determines the sample size but it cannot be measured how far the sample size would fulfill the audit objectives.

ekkarill92 answered 1 year ago

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