Statistical sampling allows each sampling unit to stand an equal chance of selection. The use of non-statistical sampling in audit sampling essentially removes this probability theory and is wholly dependent on the auditor’s judgment.

What should be used for audit sampling statistical or Nonstatistical?

Statistical sampling allows each sampling unit to stand an equal chance of selection. The use of non-statistical sampling in audit sampling essentially removes this probability theory and is wholly dependent on the auditor’s judgment.

What is statistical audit sampling?

1. Statistical audit sampling. Statistical audit sampling involves a sampling approach where the auditor utilizes statistical methods such as random sampling to select items to be verified. Random sampling is used when there are many items or transactions on record.

What is the best sampling method in auditing?

Random selection This method of sampling ensures that all items within a population stand an equal chance of selection by the use of random number tables or random number generators. The sampling units could be physical items, such as sales invoices or monetary units.

What is the major difference between statistical and Nonstatistical sampling in substantive testing?

STATISTICAL VS. The difference between the two types of sampling is that the sampling risk of a statistical plan can be measured and controlled, while even a perfectly designed nonstatistical plan cannot provide for the measurement of sampling risk.

What’s the difference between statistical and Nonstatistical?

Statistical Statistical questions require collection of data and the answers have variability (there is more than 1 possible way to answer the question). Non-Statistical Non-Statistical questions have answers with no variability (there is only 1 answer).

What is the difference between statistical and non-statistical?

A statistical question is one that can be answered by collecting data and for which there will be variability in that data. Questions that are answered with a single data point are not statistical questions because there is no variability in the data used to answer the question.

Which of the following is a characteristic of Nonstatistical sampling?

Which of the following is a characteristic of nonstatistical sampling? It requires judgment to select a sample. An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods: provide an objective basis for quantitatively evaluating sample risk.

What is a non-statistical?

Definition of nonstatistical : not of, relating to, based on, or employing the principles of statistics : not statistical a nonstatistical analysis Any sample where the sample items are not selected according to the laws of chance—that is, by probability sampling—is a nonstatistical sample.—

Why is statistical sampling important?

Statistical sampling can be a valuable tool to collect and evaluate information about a large population, or universe, when it would otherwise be impractical (or impossible) to collect that information from the entire population.

What is a non-statistical example?

Non-statistical sampling is the selection of a test group that is based on the examiner’s judgment, rather than a formal statistical method. For example, an examiner could use his own judgment to determine one or more of the following: The sample size. The items selected for the test group.

What are some examples of non-statistical questions?

Non-statistical questions will produce answers that do not vary.

  • Example 1: How old are the students on the bus? ( statistical) versus How old am I? ( non-statistical)
  • Example 2: What time did the students arrive at school? ( statistical) versus What time did I arrive at school? ( non-statistical)

What is non-statistical sampling?

Should the auditor use a statistical or non-statistical sampling approach?

When planning sampling procedures, the auditor considers this question: should a non-statistical or a statistical approach be used? A statistical method provides an objective measure of risk, optimizes the sample size, and is best for a population of a large number of homogeneous transactions.

What is the difference between statistical and non-statistical sampling?

Non-statistical sampling techniques are used more frequently than statistical sampling techniques for the evaluation of the sample. In addition, both techniques are regarded as important for the determination of the sample size and the selection of the sample items.

Should professional judgment be used in non-statistical sampling techniques?

Other auditors are of the opinion that the use of professional judgment in the application of non-statistical sampling techniques is more defensible than is a mechanistically derived, statistical measure of sampling risk that states that the auditor’s opinion was incorrect (Colbert, 1990:120;Hall et al., 2002:132). …

What are the three main parts of statistical sampling?

There are three main parts to these sampling or methods of gathering data no matter if they are statistical or nonstatistical. These methods include the sample size of the population, the items selected for the test group and how the results are evaluated.