What are the sampling methods in auditing methods?

Sampling methods include statistical and non-statistical sampling, attribute sampling and variable sampling.

I. Statistical Sampling

Statistical sampling is a sampling method that has both of the following characteristics:

1. Randomly selecting sample items;

2. Evaluating the sample results by using probability theory, including the measurement of sampling risk.

Statistical sampling is able to objectively measure sampling risk and precisely control it by adjusting the sample size, which is the most important difference from non-statistical sampling. However, statistical sampling may incur additional costs. Statistical sampling requires that individual sample items meet statistical requirements, and these may also incur additional costs.

II. Non-Statistical Sampling

Sampling methods that do not have both of the basic characteristics of statistical sampling are non-statistical sampling.

When using non-statistical sampling, sampling risk must also be considered and reduced to an acceptable level, but it is not possible to accurately determine (control) sampling risk. Regardless of whether statistical or nonstatistical sampling is used, both methods require the CPA to use professional judgment in designing, selecting, and evaluating the sample.

When properly designed, nonstatistical sampling can provide results that are as valid as statistical sampling methods.

The CPA's primary consideration in choosing between statistical and non-statistical sampling methods is cost-effectiveness.

Three, attribute sampling

The most common use of attribute sampling in an audit is to test the rate of deviation from a set control to support the CPA's assessment of the level of control risk.

In attribute sampling, each occurrence or deviation from a set control is given the same weight, regardless of the amount of the transaction.

IV. Variable Sampling

Variable sampling is a sampling method used to draw conclusions about overall amounts. The primary use of variable sampling in auditing is to perform tests of detail to determine whether the amounts recorded are reasonable.