Page 114 - DCOM509_ADVANCED_AUDITING

Unit 7: Audit Sampling

for the auditor to always ascertain that haphazard sampling is not ‘doctored’ in a way that Notes
by design avoids sampling items which, for instance, are difficult to locate.

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Caution All items in the population should get a chance of being selected.
 Stratified sampling: This sampling technique involves the auditor to split items included
in a sample into their different sections. For instance, in a payroll sample the auditor
might divide the sample in full-time males, full-time females, part-time males, and part-
time females thus working out the percentage of sections in the population.
 Systematic sampling: The systematic sampling is also referred as ‘interval’ sampling. This
sampling technique involves the auditor to take the number of sampling units in the
population and segregate this into the sample size so as to provide a sampling interval.

Example: In a sales invoice, where the sampling interval is 25, the auditor will determine
an initial point for sampling and subsequently sample every 25th sales invoice.
 Block sampling: Block sampling is a sampling technique wherein the auditor applies
measures to such items which occur in the same block of sequence or time.

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Caution The block sampling technique should be used carefully as valid references cannot
possibly be made beyond the examined period or block.
 Judgment: This sampling technique allows the auditor to use his judgment in making
selection of samples. The basic issues influencing the selection of sample are:
 value of the items
 relative risk involved

 representativeness of the sample
Self Assessment

Fill in the blanks:
1. …………….. occurs when the auditor determines that a type of receipt, deduction, exemption
or other item does not need to be tested.

2. The ………………. is adopted by the auditor in cases where the sample does not follow a
structured technique.
3. ………………………….. involves the auditor to split items included in a sample into their
different sections.
4. ……………….. is also referred as ‘interval’ sampling.

7.2 Sampling Risk

Sampling risk is actually occurs when the auditor applies the procedure to the small part of the
sample to judge the entire population, the result of it may be different if the population of the
data contains variety, this risk is known to be the sampling risk.

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