Question

Explain in your own words what is meant by Block Sampling and provide an example.

Answer 1

Solution : The Concept of Block Sampling can be explained in following 5 points

1. Block Sampling is a sampling technique used in auditing, where a sequential series of selections is made.This method of sampling involves selecting a block (or Blocks) of contiguous items from within a population.
2. For example : An auditor elects to use block sampling to examine customer invoices, and intends to pick 50 invoices. he picks invoice numbers 1000 through 1049.
3. This approach is very efficient, since a large cluster of documents can be pulled from one location.
4. However, a more random selection method would do a better job of sampling the entire population.
5. When using block sampling, sampling risk can be reduced by selecting a large number of blocks of samples.