Joe Costa, an auditor, is planning tests of controls over cash receipts. There are 7000 receipts and he plans to vouch 30 picked haphazardly from the cash receipts journal for the period 1 January to 30 September 20X0. This audit approach may be described most precisely as:
A) statistical sampling.
B) non-statistical sampling.
C) a non-sampling technique called selective examination.
D) None of the given answers.

Question

Quizplus · Accepted Answer

This approach is a non-statistical sampling method as there is no use of statistical techniques to determine the sample size or selection of items. It is also not a selective examination as the selection is done haphazardly and not based on any specific criteria. Therefore, the best choice is non-statistical sampling.

Joe Costa, an Auditor, Is Planning Tests of Controls Over