Week 4 - DQ 1

Why do auditors find it necessary to use sampling? What are the risks associated with sampling?

How might these risks affect the audit conclusion?

Response #1

Sampling is widely used in auditing. Auditors use sampling because sometimes is not possible and economically justifiable to review all items. In other words, because of time and focus, sampling is very popular. Sampling allows auditors to review items in order to establish a reasonable basis on which to make an opinion. There are certain methods whereby an individual could examine a certain portion (sample) of a population and reach statistically valid conclusions based on the sample. Sampling is the most effective way to make better audit and certain assurance even if it is any sampling risk not to detect any defects...