Describe systematic sample selection and explain how an auditor will select

160

numbers from a population of

6,400

items using this approach. What are the advantages and disadvantages of systematic sample selection?

Describe systematic sample selection and explain how an auditor will select

160

numbers from a population of

6,400

items using this approach.

A.In systematic sampling, the auditor calculates an interval and then methodically selects the items for the sample based on the size of the interval. The interval is set by dividing the population size by the number of sample items desired. To select

160

numbers from a population of

6,400,

the auditor divides

160

into

6,400

and gets an interval of

40.

He or she then selects a random number between 0 and

39.

B.In systematic sampling, the auditor randomly selects items such that each population item has a known probability of being included in the sample. To select

160

numbers from a population of

6,400,

the auditor would use a haphazard sample selection method to generate the selection.

C.In systematic sampling the auditor selects the first item in a block, and the remainder of the block is chosen in sequence. To select

160

numbers from a population of

6,400

the auditor can select the total sample of

160

by taking 4 blocks of

40

items, 10 blocks of

16,

20 blocks of

8,

or one block of

160.

D.In systematic sampling, the auditor randomly selects items such that each population item has a known probability of being included in the sample. To select

160

numbers from a population of

6,400,

the auditor would use an electronic spreadsheet to generate the selection.