Page 121 - AA Integrated Workbook STUDENT 2018-19

Evidence

5.3 Statistical and non-statistical sampling

Statistical sampling means any approach to sampling that uses:

 Random selection of samples, and

 Probability theory to evaluate sample results.

Any approach that does not have both these characteristics is considered to be non-
statistical sampling.

5.4 Sampling methods

Statistical sampling methods

 Random selection – this can be achieved through the use of random number
generators or tables.

 Systematic selection – where a constant sampling interval is used (e.g. every
50th balance) and the first item is selected randomly.

 Monetary unit selection – selecting items based upon monetary values (usually
focusing on higher value items).

Non-statistical sampling methods

 Haphazard selection – auditor does not follow a structured technique but avoids
bias or predictability.

 Block selection – this involves selecting a block of contiguous (i.e. next to each
other) items from the population. This technique is used for cut-off testing.

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