ACTIVITY CHAPTER 5-PROFE04

1. What is audit sampling?

- Audit sampling is the application of an audit method to less than 100% of the
items within an account balance or class of transactions in order to evaluate some
attribute of the balance or class is known as audit sampling. When employing audit
sampling, the auditor's goal is to give a reasonable basis for drawing conclusions about
the population from which the sample is drawn.

2, What is PSA 530?

- PSA 530 is deals with the auditor's use of statistical and non-statistical sampling
when designing and selecting the audit sample, performing tests of controls and tests of
details, and evaluating the results from the sample.

3. What is random number sampling?

- It's commonly done by using a random number table or computer program to
generate random numbers and then matching them to documents or things in the
population. Each item in the population has a nonzero probability of being selected. And
it can be used for statistical and non-statistical sampling.

4. What is haphazard selection?

- Haphazard sampling is a nonstatistical technique for approximating random
sampling by selecting sample items without any conscious bias or rationale for including
or excluding items. If the population units are all similar, haphazard sampling allows any
unit to be chosen for the sample.

5. What is stratification?
- Stratification is the subdividing the population into subpopulations or strata,
which are groups of sampling units with comparable characteristics, is done in this way.
Each sampling unit must belong to just one stratum, which must be explicitly defined.
This strategy allows the auditor to focus his efforts on the items that he believes may
have the largest monetary error.