Sampling? Use Your Professional Judgement
Article Abstract:
All sampling is judgemental. The choice is not between a statistical or judgemental sample because even a statistical sample requires choices, in order to design the sample. In designing a compliance sample, an auditor must make five choices concerning the population, sampling unit, sampling risk, and evaluation. A table is included to illustrate these factors as they relate to sampling plans. Substantive samples require four choices. Often, the most accurate sampling requires dividing the population as a whole into smaller, more homogeneous groups. Examples of factors controlling the decision of acceptable levels of sampling risk are discussed. Conclusions are that an auditor is paid for his professional judgement and should carefully consider the design of sampling.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
User Contributions:
Comment about this article or add new information about this topic:
Proposed international management accounting practice on foreign currency exposure and risk management (International Federation of Accountants Exposure Draft 3: Summer 1989)
Article Abstract:
The International Federation of Accountants's Financial and Management Accounting Committee exposure draft three, Proposed International Management Accounting Practice on Foreign Currency Exposure and Risk Management, is presented. The draft addresses: the definition of exposure and risk; the management of exposure and risk; and accounting, taxation, and fiscal controls.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Professional Liability of Accountants and Auditors. Law at PE I: Perpetuities, Accumulations. Law at PE I: Duration of Partner's Liability
- Abstracts: Try the 'True Market' Test First. Better Operating Statements for the Marketing Director. Help the Sales Director Smarten up His Pricelists