Audit

Question 15 – 1

State what is meant by a representative sample and explain its importance in sampling audit populations.

A representative sample is one in which the characteristics in the sample of audit interest are approximately the same as those of the population. This means that are sampled items are similar to the items not sampled.

For the example of representative sample is when the seller of perfume needs to sell their product to the University of Kuala Lumpur. The seller must make a survey of smells student like so the seller took only two areas only, from student accounts and student engineering to represent the university.

Question 15 – 2

Explain the major difference between statistical and nonstatistical sampling. What are the three main parts of statistical and nonstatistical methods?

The statistical sampling is an objective approach using probability to make an inference about the population. Through the application of mathematical rules, it allows the quantification (measurement) of sampling risk in planning the sample (step1) and evaluating the results (step 3). The method will determine the sample size and the selection criteria of the sample.

According to nonstatistical sampling, the auditor does not quantify the sampling risk. Instead, those sample items that the auditor believes will provide the most useful information in the circumstances are selected. The meaning is the nonstatistical sampling relies on judgment to determine the sampling method, the sample size and the selection items in the sample.

The three main parts of statistical and nonstatistical methods is :

1. Plan the sample

The action of plan the sample is decide that a sample size

2. Select the sample – Perform the tests

The action of select the sample and perform the tests is decide which amount of items to select from the population....