Why do auditors use audit sampling to determine material misstatements in financial statements? Why not just...

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Why do auditors use audit sampling to determine material misstatements in financial statements? Why not just test every single item and every transaction? Many people often think that auditing every single transaction is ideal, but that is actually not the case. Sampling can be defined as the process of examining only part of a set of data/population, sufficient to gain reasonable assurance regarding the entire data/population. Auditors always try their best to pick a sample that is representative of the population. However, it is not always possible to get a truly representative sample, due to bad luck or pure errors in judgment. 2.1 You are required to discuss sampling risks and provide two examples of these risks. (10) 2.2 Statistical sampling is a method that is used by auditors to select the population that needs to be audited. You are required to discuss three types of statistical sampling techniques. (10) Why do auditors use audit sampling to determine material misstatements in financial statements? Why not just test every single item and every transaction? Many people often think that auditing every single transaction is ideal, but that is actually not the case. Sampling can be defined as the process of examining only part of a set of data/population, sufficient to gain reasonable assurance regarding the entire data/population. Auditors always try their best to pick a sample that is representative of the population. However, it is not always possible to get a truly representative sample, due to bad luck or pure errors in judgment. 2.1 You are required to discuss sampling risks and provide two examples of these risks. (10) 2.2 Statistical sampling is a method that is used by auditors to select the population that needs to be audited. You are required to discuss three types of statistical sampling techniques. (10)

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