Accepting and Planning the Audit.

Topics: Sampling, Sample size, Sample Pages: 4 (1218 words) Published: January 27, 2013
To: Audit Manager,

Describe five methods which you could use to select your sample for testing, showing the selected sample for each.

During the audit planning, the sample sizes and the objectives of sample testing are determined with details. Sample selection has a principle that all the items in the population have had a chance to be selected. There are various methods that you can use to select your sample for testing. These are: * Random;

* Systematic;
* Monetary Unit Sampling;
* Haphazard selection;
* Block selection.

Random selection:
Random selection is the best method used to obtain a sample as if evaluates the results statistically. Sampling using this method is done without being replaced. This means that once an item has been selected and tested, it is no longer re-selected. That item is removed from the population. Auditors can implement this selection method of sampling through computer programs or random number tables. This means that if the auditors contain the population in their computers, then most of the auditing software would allow random selection of the sampling to be done. This way of sample selection doesn’t allow the auditors to be bias during their sample selection. Auditors also use random number tables to implement random samples. A random number table consists of 10,000 digits which are random between 0 and 9 which are displayed in rows and arranged in groups of 5. After numbering each item of the population and determining the size of sample and population, you can select a starting point from the random number table by closing your eyes and pointing randomly on the page. Your starting point is the number which your finger touches from which you can choose the direction in which to read either up or down or left to right and vice versa.

Systematic selection:
Systematic selection is a process that divides the number of...
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