Understanding Audit Sampling

What is audit sampling?

• Audit sampling involves selecting items based on random chance without any criteria.

• Audit sampling is the process of reviewing all items in a population.

• Audit sampling is the selection of a subset of items from a population for the purpose of drawing conclusions about the entire population.

• Audit sampling is the complete analysis of every item in a population.

What are the two main types of audit sampling?

• Statistical sampling and non-statistical sampling

• Internal sampling and external sampling

• Qualitative sampling and quantitative sampling

• Random sampling and systematic sampling

Define statistical sampling in the context of audits.

• Statistical sampling in audits is the process of selecting a representative subset of data to evaluate the accuracy of the entire population.

• Statistical sampling is the process of collecting all data from the population.

• Statistical sampling involves selecting only the highest values from the data set.

• Statistical sampling is a method used to eliminate all errors in the data.

What is non-statistical sampling?

• A method of selecting samples randomly without any judgment.

• A technique that uses statistical analysis to select samples.

• Non-statistical sampling is a method of selecting samples based on subjective judgment rather than random selection.

• A process that involves selecting samples based on historical data.

How does random sampling differ from systematic sampling?

• Random sampling is always more accurate than systematic sampling.

• Random sampling selects individuals by chance, while systematic sampling selects individuals at regular intervals.

• Random sampling uses a fixed sample size, while systematic sampling does not.

• Systematic sampling selects individuals randomly, while random sampling uses a fixed pattern.

What is the purpose of using audit sampling?

• To evaluate the accuracy and reliability of a larger population without examining every item.

• To eliminate the need for any documentation during the audit.

• To ensure every item in the population is examined thoroughly.

• To increase the number of items in the audit process.

Explain the concept of attribute sampling.

• Attribute sampling is a technique for predicting future trends based on past data.

• Attribute sampling involves collecting data from every member of a population.

• Attribute sampling is used to measure the average value of a population.

• Attribute sampling is a method used to determine the presence or absence of specific attributes in a population by examining a sample.

What factors should be considered when selecting a sample size?

• Population size, confidence level, margin of error, variability, and study design.

• Time of day, weather conditions, location

• Sample color, sample shape, sample weight

• Number of researchers, funding amount, equipment used

What is the role of documentation in audit sampling?

• Documentation is only necessary for financial audits.

• Documentation is irrelevant to audit sampling processes.

• Documentation is used solely for legal compliance.

• Documentation ensures transparency and supports the audit conclusions.

How can sampling risk impact audit conclusions?

• Sampling risk is irrelevant to the selection of audit samples.

• Sampling risk guarantees accurate audit conclusions.

• Sampling risk only affects the efficiency of the audit process.

• Sampling risk can lead to incorrect audit conclusions due to non-representative samples.