Lesson: The Sampling Process

This lesson delves into the sampling process, an important aspect of auditing. The discussion begins with determining the population, such as cash transactions, and defining the audit objectives. Next, the lesson covers the importance of deciding on sample size and sampling method, emphasizing the distinctions between statistical and non-statistical methods, and judgment-based versus strict calculations. The lesson then illustrates how to determine the sampling unit, sampling interval, and the actual sampling process. Lastly, the lesson explains the evaluation of the sample to ensure accuracy and the need for a reassessment in case of errors or omissions before communicating the findings to relevant parties.