ASSIGNMENT Audit sampling Learning objective It is inefficient for auditors to test every transaction and record when auditing the financial statements; instead, samples of transactions and balances are used. In this assignment, you will learn to identify which sampling method is most appropriate in different circumstances. The sampling methods available to auditors are: random selection systematic selection haphazard selection block selection judgemental selection There are advantages and disadvantages associated with each of these sampling methods, but the auditor must choose the method that allows them to make a conclusion on the entire population based on the results of testing the sample. Stratification (dividing a population into smaller groups with similar characteristics) can be used prior to any of the sampling methods mentioned above. Required Select one (1) procedure from each of the three accounts (Cash, AR, and Sales) in assignment 8 (documented in working paper A8-2) that involves sampling (i.e., you may not select and discuss analytical procedures) and determine which method of audit sampling should be used. Please include your choice and justify your method of audit sampling in working paper A9-1. Note that there are more lines than you need for this assignment. You are only required to include a total of three (3) items (one for each account)