What are some of the different types of sampling methods that are available to the auditor? How does the auditor decide which method to use? How will the different methods affect the audit?

Answer:

Some different types of sampling methods used are statistical and non-statistical. Non- statistical sampling is when the auditor defines sample size and assesses sample results totally on the grounds of independent measures and their experience (Boynton and Johnson, 2006). If too large of sample in one area and to small of a sample in another could cause a wrong conclusion to be drawn. This could cause an insufficiency of audit evidence to be gathered. Statistical sampling is when the auditor defines the sample size and assesses results on the basis of laws of likelihood (Boynton and Johnson, 2006). This increases the likelihood of a more efficient planning of methods used and a more sufficient conclusion to be drawn during the audit. The use of these sampling methods will not affect the methods used to audit sample sizes of data and information. There is a nine steps process to planning and performing these methods of samplings that helps increase the probability of efficient and effective audit.

‘1. Determine the test objectives.

2.            Determine procedures to meet objectives.

3.            Make a decision about the audit sampling technique.

4.            Define the population and sampling unit.

5.            Determine the sample size.

6.            Select a representative sample.

7.            Apply audit procedures.

8.            Evaluate the sample results.

9.            Document conclusions.‘ (Boynton and Johnson, 2006).

Boynton, W. C., & Johnson, R. N. (2006). Modern auditing: Assurance services and the integrity of financial reporting. (8th ed.). Hoboken, NJ: Wiley.