There is a considerable difference of opinion among auditing practitioners about the most appropriate method of audit sampling. Some believe the only appropriate method is statistical sampling. Others believe that because of the large number of judgements required in statistical sampling, auditors may as well use judgemental sampling. The following comment was made by Donald Schwartz (The CPA Journal, November 1998, p. 50) in relation to this issue:

Some practitioners question the usefulness of statistical sampling at all, since it certainly does not eliminate, or even reduce, the need for professional judgement. The auditor must still decide on a tolerable misstatement amount, assess related inherent and control risks, and respond appropriately to test results.

Required

a. What does ASA 530 (ISA 530) say about the respective merits of statistical sampling compared with non-statistical sampling?

b. Find a research study that evaluates a particular method of sampling (statistical or nonstatistical)

and summarise the results.