The International Standard on Auditing (UK) (ISA (UK)) 530, “applies when the auditor has decided to use audit sampling in performing audit procedures. It deals with the auditor’s use of statistical and non-statistical sampling when designing and selecting the audit sample, performing tests of controls and tests of details, and evaluating the results from the sample.” Required: (a) Define and explain sampling risk (b) State and explain five methods of sample selection and how they function (c) If an auditor wishes to include high-value items in their sample, which of the sample selection methods identified in part (b) would they use? (d) State five scenarios where sampling may not be appropriate.
The International Standard on Auditing (UK) (ISA (UK)) 530, “applies when the auditor
has decided to use audit sampling in performing
auditor’s use of statistical and non-statistical sampling when designing and selecting
the audit sample, performing tests of controls and tests of details, and evaluating the
results from the sample.”
Required:
(a) Define and explain sampling risk
(b) State and explain five methods of sample selection and how they function
(c) If an auditor wishes to include high-value items in their sample, which of the sample
selection methods identified in part (b) would they use?
(d) State five scenarios where sampling may not be appropriate.
Answer:-
Sampling meaning:- Sampling procedures are the methods used to draw samples from a large population in order to interpret the results in a meaningful way. To collect the data and get the required results, the researcher employs a variety of sampling approaches.
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