During the course of an audit, the auditor attempts to obtain sufficient relevant and
reliable evidence to provide the satisfaction that the financial records are completed
and accurate. One of the ways that the auditor obtains satisfaction is to select
representative samples of transactions and balances for detailed testing, such samples
being made using either statistical of non-statistical methods.
Required:
a) Describe the main factors which influence the auditor in determining the size of
the sample he will use for his detailed testing. (12 marks)
b) Describe three areas where the judgment will be exercised by the auditor when
using statistical sampling. (8 marks)