Question

2. Explain the Concept of Audit Sampling?

Answer 1

Due to lack of sufficient time for the audit, an auditor cannot check 100% transactions of the company. Gone are the days for routine checking and vouching of all transactions.This is where audit sampling comes into the picture.

Audit Sampling refers to the application of audit procedures to less than 100% of items within a population of audit relevance such that all sampling units have a chance of selection in order to provide the auditor with a reasonable basis on which to draw conclusions about the entire population.

The objective of the auditor when using audit sampling is to provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected.