Random Sampling

 A random number generator is used to make selections. This approach is the most theoretically correct, but can require
more time to make selections.
 Random sampling is a sampling technique where we select a group of subjects (a sample) for study from a larger group (a
population). Each individual is chosen entirely by chance and each member of the population has a known, but possibly
non-equal, chance of being included in the sample.
 By using random sampling, the likelihood of bias is reduced.

Cluster Sampling

 Divides the population into heterogeneous clusters that match the population.
 A random sample is taken from within one or more selected clusters. For example, if there are 20 small projects in the
scope, you might use cluster sampling to randomly select 4 projects as representative for the audit.

Stratified Sampling

 The auditor splits the population into different sections (such as high value and low value) and then selects from each
section.
 Divides the population into homogeneous subgroups that need to be represented.
 To do that, divide the population into subgroups, or strata. Then select random or systematic samples from within each
subgroup.
 Suppose that 70% of your customers are commercial and 30% are government. You could divide the population into those
two groups and take 70% of your samples from the commercial group and 30% of your samples from the government
group.

Block Sampling

 A consecutive series of items are selected for review. Though this approach may be efficient, there is a risk that a block of
items will not reflect the characteristics of the entire population.
 Block sampling is a sampling technique used in auditing, where a sequential series of selections is made. For example, an
auditor elects to use block sampling to examine customer invoices, and intends to pick 50 invoices. She picks invoice
numbers 1000 through 1049. This approach is very efficient, since a large cluster of documents can be pulled from one
location. However, a more random selection method would do a better job of sampling the entire population. When using
block sampling, sampling risk can be reduced by selecting a large number of blocks of samples.

Attribute Sampling

 Sampling plan used to estimate the frequency of occurrence of a certain characteristic in a population
 Generally used when performing tests of controls to estimate the rate of deviations from prescribed internal control
policies or procedures.

Population

 The entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions.
