Question

Briefly explain why auditors utilize audit sampling

Answer 1

Answer:

Audit sampling enables auditors to make conclusions and express fair opinions based on predetermined objectives without having to check all of the items within financial statements. The auditors will only verify selected items, and through sampling, can infer their opinion on the entire population of items.

Answer 2

Explanation:

The given questions have been answered as per the Auditing standards and guidelines issued by the Auditing and Assurance Board (AASB).

As per the provisions of SA 530,Auditors utilize audit sampling because of the following reasons:

i) Auditors usually don't have enough time for detailed 100% examinations.

ii) Number of Transactions and Balances are

generally very high.

iii) Most items are identical. iv) If, on basis of compliance procedures, it is concluded that the internal control system is very effective,there is no need for 100%

examination.