Simplex and Company an Audit firm, uses random samples when performing audit tests, whenever possible. They believe that this gives them the best chance of getting representative samples of their clients accounting information.

In the audit of Sensational Products, a random sample of 30 inventory items was taken from a population of 1,800 items for testing unit and total costs. Only 1 of the 30 items was in error, but it was large. In investigating the error, Clovis Gentles, the audit staff person doing the test, was told by Justin Brown, Sensationals Controller, that the error occurred while the regular inventory clerk was on vacation and was really only an isolated error.

1. Explain the concept of representative sampling in auditing. (4 marks)

1. Explain the risks associated with representative sampling in auditing. (5 marks)

1. Discuss THREE (3) non-probabilistic sample selection methods. (6 marks)