1 (e) what is Audit Sampling ? What factors auditor should consider for designing a sample ?

Sampling is one audit tool that allows the auditor to draw inference from tests of a subset of clients transactions Objective he purpose of this standard is to establish standards on the deign and selesction of an audit sample and the evaluation of sample results! Steps in a sampling plan 1! Specif" the audit objective! #! $efine the population and number of population! %! Specif" the sampling unit! &! Selecting the sampling method such as random' s"stematic and hapha(ard! )! Specif" the sample parameters! *! $etermine the sample si(e! +! ,hoosing a sample techni-ue! .! $rawing a sample! /! 0valuating a sample! 11! $etermine the adjustment to original plan if needed! 11! evaluating an" changes 1#! formulating a conclusion Sampling ris2 it arises from the possibilit" that the auditors conclusion' based on a sample' ma" be different from the conclusion that would be reached if the entire population were subjected to the same audit procedure !