- 5 Marks
Question
ISA 530 “Audit Sampling” states that the objective of the auditor, when using audit sampling, is to provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected.
Required:
Explain the difference between statistical sampling and non-statistical sampling.
Answer
- Statistical Sampling: Involves random selection of a sample and the use of probability theory to evaluate the sample results, including the measurement of sampling risk. It provides a basis for drawing objective conclusions about the entire population.
- Non-Statistical Sampling: Involves judgmental selection of items from the population, without using probability theory. Conclusions are based on the auditor’s professional judgment, and there is no formal assessment of sampling risk.
- Tags: Audit Sampling, Non-Statistical Sampling, Statistical Sampling
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Series: NOV 2016
- Uploader: Theophilus