Audit Sampling

Question 1

What are some reasons to sample?

Answer 1

Cost effective
Time management
Focus on key areas
Feasibility

Question 2

What is the audit sampling process?

Answer 2

Define objectives
Define population
Select sampling method
Determine sample size
Select sample items
Perform audit procedures
Evaluate results
Document the process

Question 3

What type of sampling is used for test of controls?

Answer 3

Attribute sampling

Question 4

What type of sampling is used for test of details?

Answer 4

Variable sampling

Question 5

What type of statistical sampling is used in attribute sampling?

Answer 5

Regular
Sequential
Discovery

Question 6

What type of statistical sampling is used in variable sampling?

Answer 6

Classical
Probability proportional to size (PPS)

Question 7

What is random sampling?

Answer 7

Every item in the population has an equal chance of being selected

Question 8

What is systematic sampling?

Answer 8

Auditor selects every nth item after a random start

Question 9

What is haphazard sampling?

Answer 9

Auditor might pick invoices randomly without following a numerical order or pattern, simply choosing those that, at first glance, seem relevant or necessary for review.

Question 10

What is block or cluster sampling?

Answer 10

The auditor selects continuous units or ‘blocks’ of items for review.

Question 11

What is stratified sampling?

Answer 11

Auditor divides the population into subgroups (or ‘strata’) and selects samples from each subgroup.