Case Study 2: Sampling

Part (a)

Match the numbered situations below with one of the following types of audit sampling or sampling risk: Statistical sampling, non-statistical sampling. Sampling risk, non-sampling risk:

Rather than looking only for authorized signatures, an auditor checked to see if there were any signatures in the credit approval box on a sample of sales orders.

An auditor concluded that, based on a statistical sample, the clients control system was working acceptably when, in fact, the population deviation rate was unacceptable.

Using the laws of probability, an auditor selected a sample and evaluated the results of her sample.

Part (b)

Karina, a first-year auditor, is asked to select a sample of invoices to audit the utility expense account. Below is the account detail.

Month	Balance	Month	Balance
January	$15,245	July	$ 2,901
February	12,973	August	2,837
March	11,359	September	3,690
April	9,326	October	5,890
May	6,380	November	9,823
June	4,558	December	14,906

The audit program asks to select a sample of four items.

Required

Using systematic selection, determine which four months will be selected.

Using haphazard selection, determine which four months will be selected.

Using block selection, determine which four months will be selected.