There are different ways in which a statistical sample can be selected.

The most frequently used method is random selection where each item in the transactions has a equal chance of selection. Simple random sampling ensures that every transaction has an equal chance of selection. Though simple to administer, the underlying assumption is that the transaction is of same characteristics. In cases where the transaction is of not the same characteristics, a stratified sampling would be a better option. Here the transactions are sub-divided into same characteristics groups and then a random sampling is done on the groups, ensuring a better representative sample. Each sampling method has its practical use and limitation. The auditor uses his udgment in determining which !ind of sampling is best suited to his audit ob. It is advisable to ta!e e"pert advice in udging the most suitable method. # Some random sampling methods that are commonly used are Simple random sampling where each transaction has an equal chance of selection. This is useful when the nature of transactions is uniform. Stratified random sampling where the transactions are divided into strata and random sample is drawn from each stratum. Systematic sampling is done through getting sample transactions at equal intervals. $ften it might be easier to draw systematic sample than random sample. %luster sampling where the transactions are divided into clusters and transactions form each cluster are selected randomly. This is useful when the transactions can be easily divided into clusters. &robability proportional to si'e sampling which is a special case of cluster sampling where clusters are of different si'es( larger clusters have a higher chance of selection. )ulti-stage sampling, which is sampling through a series of stages. This may combine the various single-stage sampling methods, e.g., simple, stratified, systematic, cluster sampling, at different stages. *ith volume of large transactions it is often useful to carry out sampling in two or more stages. +t each stage of sampling a suitable method of selecting the sample could be used. $nce the method of sampling is decided, it is essential to design the actual sample.