Auditsampling

Learningobjective

It is inefcient for auditors to test every transaction and record when auditing the nancial statements; instead, samples of transactions and balances are used.

Identifywhichsamplingmethodismostappropriateindifferentcircumstances.

Thesamplingmethodsavailabletoauditorsare:

• randomselection
• systematicselection
• haphazardselection
• blockselection
• judgementalselection

Thereareadvantagesanddisadvantagesassociatedwitheachofthesesamplingmethods, butthe auditor must choosethe method that allows them to make a conclusion on the entire population based on the results of testing the sample.

Stratication(dividingapopulationintosmallergroupswithsimilarcharacteristics)canbe used prior to any of the sampling methods mentioned above.

Required

Foreachoftheprocedures, determinewhichmethodofauditsamplingshouldbeusedand justify the choices.

Alpine Bags Ltd. December31,2023

Salesandcashreceiptsprocesssamplingmethods

#	Samplingmethod	Justication
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#	Samplingmethod	Justication
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Discussionpoints

Howcantheauditorbesurethatthesampletheyhavechosenisrepresentativeofthe population?

Whatwouldbetheimpactontheauditor'sjudgementofasamplethatisnotrepresentative of the population? Could this have an impact on the validity of the auditor's opinion on the nancial statements?