Sampling (statistical and judgemental)
Testing part of a population to conclude about the whole.
Statistical sampling selects items randomly and lets the auditor measure sampling risk and project results to the population with a stated confidence. Judgemental sampling uses the auditor’s judgement to pick items. It can target risk, but its results can’t be projected statistically.
On the exam
The main advantage of statistical sampling is that sampling risk can be quantified objectively. To test completeness, sample from the source documents (e.g. shipping records) and trace forward.
Related terms
- Audit riskThe risk of reaching the wrong conclusion about what you audited.
- Audit evidenceThe information an auditor relies on to support a conclusion.
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