Lesson: Variable Sampling

In this lesson, Nick Palazzolo, CPA, discusses variable sampling, an audit technique that involves selecting a sample of transactions or items for testing to determine if they comply with a certain criteria. The results of the sample are then extrapolated to the population as a whole. Variable sampling is predominantly used in substantive testing, while attribute sampling is typically used for tests of controls. Nick provides examples of how variable sampling can be applied, such as sampling items from inventory to test their cost and quantity, and highlights the key differences between attribute and variable sampling. He emphasizes the importance of familiarizing oneself with these concepts for a successful understanding of sampling techniques in auditing.