An auditor is selecting shipping documents as part of testing sales transactions. There were 3,000 shipping documents

Question:

An auditor is selecting shipping documents as part of testing sales transactions. There were 3,000 shipping documents issued during the period being tested and the auditor has judgmentally decided to select 60 documents. The auditor counts through the documents selecting every 50th one. The auditor uses a random start and during the selection process makes several additional random starts.

Required:

a. Is audit sampling being used?

b. Is the selection method a random-based method?

c. Is statistical sampling being used?

d. Why did the auditor use more than one random start?

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