Procedures are common for both categories of sampling (statistical/non-statistical)

1. Planning the sample –eg. involves the decision that sample size eg. 100
2. Selecting the sample and performing the tests –involves which 100 to take and deciding for
eg. 3 exceptions/deviations exist
3. Evaluating the results –involves reaching to a conclusion that the 3 exception/deviation rate
estimated from sample are equals to the exception/deviation rate from population

Points of difference
Statistical Non statistical
Nature Statistical sampling uses the laws of Non-statistical sampling is audit
probability when selecting the sample sampling not based on statistical
and extrapolates the sample result to calculations.
the population.
Sample selection Sample must be randomly selected. No requirement for random selection
When to use? Statistical sampling is used when Non-statistical samples can be
random numbers can be assigned to used:
population items and an objectively -When the auditor has additional
defensible result is desired. knowledge about the population,
-When strictly defensible results
are not required, and
-When assignment of random
numbers to population items is
difficult or impossible.
Quantification of sampling Requires the auditor to quantify the No quantification of sampling
risk sampling risk that influences the risk.
testing decision in determining the
sample size.
Provides means of quantifying
sampling risk (it measures the Provides no means of quantifying
possibility that the actual amount of sampling risk
error in the population is significantly
greater/smaller than that indicated by
the results of the sample)
 Sampling risk can be specified
in advance
 Enables the computation of
sample size that controls the
sampling risk at the desired
level
 Doesn’t eliminate the use of
professional judgment
Documentation More extensive documentation of Auditors would be wise to fully
decision process because of the greater document the audit work to
rigour of statistical sampling. Auditors provide background for review,
provide a better source for review, planning, and evidence.
planning, and evidence should the (The importance of
audit work be called into question. documentation cannot be too
strongly emphasized; if the audit
work is called into question when
non-statistical sampling is used,
only good documentation can
provide proof of the soundness of
the auditor’s judgment.)
Inference of The measurement of the sample results With a non-statistical sample, the
Results (Whether using must be based on statistical methods inference must be made informally
statistical or non-statistical (permits statistical evaluation). With a (that is, the auditor must use
sampling, the auditor statistical sample, the inference is judgment to estimate the population
infers the results of formalized mathematically (that is, a balance or error).
the sample to the point estimate is calculated and the
population.) confidence interval is constructed).
Advantage The advantage of statistical sampling The advantage of non-statistical
is that the sampling risk is known. sampling is that it permits the
Statistical sampling may assist auditor to use greater judgment.
auditors in:
-Designing efficient samples Non-statistical sampling methods
-Measuring the sufficiency of the are widely used by auditors
evidences obtained especially for tests of relatively
-Objectively evaluating sample resultssmall population. (Relatively less
complex to apply)
Limitation Requires additional costs of training Since there is no measurement for
audit staff, designing sampling plans error, auditors may take larger or
and selecting items for examination more costly samples or
unknowingly accept higher than
acceptable level of sampling error