Briefly explain how the auditor can use each of the following methods of sample selection when carrying out his audit assignment; i) Stratified sampling (2 marks)

a) Briefly explain how the auditor can use each of the following methods of sample selection when carrying out his audit assignment;
i) Stratified sampling (2 marks)
ii) Cluster sampling (2 marks)
iii) Haphazard sampling (2 marks)
iv) Block sampling (2 marks)
b) Explain the reasons why an auditor is not required to carry out a complete check of all the transactions and balances of a business. (4 marks)
c) Identify the cases where an auditor is required to conduct a complete check of all the transactions and balances of a business. (4 marks)
d) Explain two reasons why an auditor should consider materiality when selecting a sample size. (4 marks)
(Total: 20 marks)

 

 

 

 

 

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