When using a statistical sampling plan, the auditors would probably require a smaller sample if the:-- Desired risk of incorrect acceptance increases.
How do auditors determine sample size?
An auditor who applies statistical sampling uses tables or formulas to compute sample size based on judgments about factors such as characteristics of the population and certain assessed risks
Why do auditors use statistical sampling?
Audit sampling enables auditors to make conclusions and express fair opinions based on predetermined objectives without having to check all of the items within financial statements. The auditors will only verify selected items, and through sampling, can infer their opinion on the entire population of items
What is a characteristic of statistical sampling?
The essential features of statistical sampling are:
(i) The sample items should have a known probability of selection- for example, by random selection.
(ii) The sample results should be evaluated mathematically – that is, in accordance with probability theory.
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