BUS 426 : 6. Sampling.pdf

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Brad Bart

Document Summary

Using the concepts of materiality, audit risk, inherent risk, control risk and detection risk, this module, this module discusses the topic of audit sampling. Audit sampling is not a specific audit procedure but it is a method of organizing the application of audit procedures and a method of organizing the auditor"s decision- making process. Robertson: sample the set of all sampling units. How risk and materiality are used in audit sampling. The determination of an appropriate sample on a representative basis may be made using either statistical or non-statistical methods. Whether statistical or non-statistical methods are used, their common purpose is to enable the auditor to reach a conclusion about an entire set of data by examining only a part of it. Statistical sampling methods allow the auditor to express in mathematical terms the uncertainty he or she is willing to accept and the conclusions of his or her test.