Summary-Chapter 9 Sampling 1. Define sampling 2. What is the purpose of sampling in auditing? 3. Risks are everywhere, even in sampling. What are the risks (and description) in sampling? 4. What type of sampling do auditors use? Name two advantages and two disadvantages of each 5. Why is random sampling statistically unbiased? 6. How do auditors select a random sample? 7. Are there other sampling methods used by auditors? Yes or NO. If yes, what are they? If no, how does this affect the audit? 8. What type of sampling is this? Number of Accounts Method of Selection Used Stratum Composition of Stratum 1 Accounts of $10,000 and over All accounts 2 Accounts of $5,000 to $9,999.99 50 accounts (random number generator) 3 Accounts of less than $5,000 30 accounts (random number generator)