Sampling - Audit Unit

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Can anyone explain to me the basics of statistical and non-statistical sampling and also define the probability theory, all in primary school language please. I don't consider myself to be thick, but I have just read this chapter in the book and now face doing the exercises and realise that I don't understand a thing of what I have read. Help!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    Hi Jane<BR><BR>I feel like this about everything in Audit. We didn't have the choice of the optional units - Audit and Cash Management & Credit Control were all that our centre were offering. Still, moan, moan, moan.<BR><BR>We covered the main types of sampling last week and as I understand it there are three main methods of sampling<BR>1. Random - ensures 100% of the population has a chance of selection - perhaps using random number tables (Excel) <BR>2. Systematic/Interval - Systematic uses another mathematical strategy by selecting items at given intervals with a random start - every 5th item being selected starting at say 3 - 3rd, 8th,13th items being selected and so on.<BR>3. Haphazard - At first glance I thought random and haphazard were the same, however, haphazard selection should not use any formal mathematical basis or bias. <BR><BR>There is also:<BR>Stratification - dividing the population into sections with common characteristics <BR>Value - selecting the largest items within a population and <BR>Squence - selecting a group of sequential items, ie cheques, sales invoices, etc.<BR><BR>Not sure if this is any clearer - it has to be about the only thing I have grasped so far. Sorry I can't help you with the probability theory as this has not been discussed in relation to Audit yet.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    Thanks for this, it helps to make a few things clearer. However the question that I have to answer on a practice paper, is to explain statistical and non-statistical sampling. This subject is really boring isn't it, so much dry reading. It is my final unit and I can't wait to get it all done now.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    Hi Jane<BR><BR>I probably told you nothing you didn't already know if I have misunderstood the question. Don't know the model answer for this but would suggest that statistical sampling relies on statistical theory to measure sampling risk and evaluate sample results (mathematical formulae?) whereas non-statistical sampling relies purely on judgement to evaluate results. Hope you get sorted soon if this doesn't help either.<BR><BR>I've spent all day struggling with a flow chart for a large organisation's purchasing system. I've decided that I'm making a meal out of it because I don't really want to do this unit and not because it is really that difficult. I feel like a spoilt child faking a tummy ache because I don't want to do PE in the cold!!<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    Hi<BR><BR>This does make it a bit clearer, so I will try and write some sort of answer and see how it goes. <BR><BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    I really hated auditing its the most boring subject Ive ever done. I found the BPP books really hard to understand. Osbourne books are so much easier and explain it to you in simple english!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sampling - Audit Unit

    Tried to get hold of an Osborne Audit book but I don't think they publish one. I can't really take to the format of BPP which isn't helping at all. I think if I could relate to or even enjoyed the text more I might be more inclined to keep my nose in the book until something sinks in. If anyone knows of any other text which is a little easier going I would welcome the recommendation.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sampling - Audit Unit

    We are using the Kaplan book in our Audit study and i really like it. Lots of self check tests at the end of each chapter. Really helpful.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sampling - Audit Unit

    Hi Birdseye,
    I just wanted to say that my college is only teaching the auditing and cash management units out of the options. As I need to study business and personal tax, I am going to have to do these at home out of the books. He seems fine with this. If you really want to study the tax options don't let the college stand in your way. 8)
    Hope this helps.
    Louise

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