Contents
- 1 What is non-statistical sampling in auditing?
- 2 What is statistical sampling and non-statistical sampling?
- 3 What is statistic example?
- 4 What are the advantage and disadvantage of statistical and Nonstatistical audit sampling?
- 5 Which is the best definition of statistical sampling?
- 6 How is the reliability of audit objectives measured?
What is non-statistical sampling in auditing?
Non-statistical sampling is the selection of a test group that is based on the examiner’s judgment, rather than a formal statistical method. For example, an examiner could use his own judgment to determine one or more of the following: The sample size. The items selected for the test group.
What is statistical sampling and non-statistical sampling?
Statistical versus non-statistical sampling Statistical sampling allows each sampling unit to stand an equal chance of selection. The use of non-statistical sampling in audit sampling essentially removes this probability theory and is wholly dependent on the auditor’s judgment.
What are the types of audit sampling?
ISA 530 recognises that there are many methods of selecting a sample, but it considers five principal methods of audit sampling as follows:
- random selection.
- systematic selection.
- monetary unit sampling.
- haphazard selection, and.
- block selection.
What are the advantages of statistical audit sampling?
The critical advantage of statistical sampling are: it can offer a means of extrapolating errors, including implication of nil errors to the larger population in a quantitative and usually more reliable manner than would otherwise be possible.
What is statistic example?
A statistic is a number that represents a property of the sample. For example, if we consider one math class to be a sample of the population of all math classes, then the average number of points earned by students in that one math class at the end of the term is an example of a statistic.
What are the advantage and disadvantage of statistical and Nonstatistical audit sampling?
The main advantages of audit sampling using non-statistical method are a statistically derived sample and a statistical evaluation of sampling risk. One of the disadvantages of non-statistical method includes the use of formal techniques to determine sample size, select the sample and to evaluate results.
What kind of sampling is used in audit?
1. Statistical audit sampling. Statistical audit sampling involves a sampling approach where the auditor utilizes statistical methods such as random sampling to select items to be verified. Random sampling is used when there are many items or transactions on record. Consider a company with more than 100 inventory.
How are the results of a statistical audit evaluated?
The sample results can be statistically evaluated and the risks measured. Th e conclusion can be expressed quantitatively i.e. “Based on the sample results, we are 95% confidence that the rate of deviation in the population would not exceed X% (where X% is the tolerable error)”.
Which is the best definition of statistical sampling?
Statistical sampling requires that samples be selected at random, generally using a tool to generate random numbers. The simple random sampling method above would be considered statistical sampling. Non-statistical sampling allows an auditor to use professional judgment when selecting samples.
How is the reliability of audit objectives measured?
Reliability of audit objectives can be measured in statistical sampling. Following are the advantages of Statistical Sampling − Increase in the size of population does not mean increase in sample size. Indication of specific risk and precision are associated with estimation of minimum sample size.