Statistical Sampling in Audit

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Statistical Sampling in Audit 1. Introduction: Our knowledge our attitudes and our actions are based to a very large extent on observations of few samples. This is equally true in everyday life, in scientific research and also in Audit . A person s opinion of an institution that conducts thousands of transactions every day is often determined by the one or two encounters which he or she has had with the institution in the course of several years. In science and human affairs alike we lack the resources to study more than a fragment of the phenomena that might advance our knowledge. Sampling consists of selecting some part of a population to observe so that one may estimate something about the whole population.

4.1.1 In Simple Random Sampling With Replacement (SRSWR) a unit is selected from the sampling frame (list of units in the population); the unit is replaced back and the next unit is selected; the process is repeated till a sample of the desired size is selected. As a result it is possible for a unit to be included more than once. 4.1.2 In Simple Random Sampling With Out …

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