Lesson: Introduction to Sampling Techniques

This lesson delves into the concept of audit sampling, a technique that involves testing less than 100% of the items within an account balance or class of transactions. The primary purpose of audit sampling is to evaluate particular characteristics of these account balances or transactions to determine whether there are any potential misstatements. This method is used to save time and energy as it is not feasible to evaluate every single transaction within an organization. The lesson further discusses the mix of subjective and objective elements involved in sampling, as well as the situations in which auditors are likely to utilize this technique.