2. Usually, it is not practical for the auditors to examine transactions for 100% especially in the case of large entities. It may be very boring or it may not even be effective. To be effective, the auditors make use of audit sampling. It can be statistical and non-statistical sampling. Non-statistical sampling is more subjective than statistical sampling, typically using haphazard selection methods and placing no reliance upon probability theory. In certain circumstances, statistical sampling techniques may be difficult to use. Therefore, the auditor will review the circumstance of each audit before deciding whether to use statistical or non-statistical sampling.

Required:

i.Describe three (3) factors which auditor should consider when determining size of sample.

ii.Describe to what extent statistical sampling enhances the quality of the audit evidence