Exploring Statistical Sampling

Statistical sampling (SS) can be used by auditors to reduce costs in planning, executing, and evaluating audit procedures to gather evidential matter. SS can also serve as a framework to help auditors plan more effective nonstatistical sampling applications, and it is often recommended for use in auditing Federally assisted programs. SS enhances, rather than replaces, the auditor's judgement. The information resulting from it is defensible and objective, and its use makes firms appear more professional. The auditor can learn about SS from textbooks and from continuing education courses. Professors and internal specialists can also provide guidance. When first using SS, the auditor should limit the number of applications and begin by testing compliance with certain client internal accounting control procedures. He should use it where a client performs prescribed control procedures. Tables or computer time-sharing programs can be used to guide auditors in making necessary calculations.