Auditors Have Used Samples To Conduct Audit Tests For Decades

Auditors have used samples to conduct audit tests for decades. Despite the frequent use of sampling, auditors often use nonstatistical sampling rather than statistical sampling. Visit the website for The CPA Journal (www.cpajournal.com) and use the search function to locate the article “Statistical Sampling Revisited” by Neal B. Hitzig, May 2004.
Based on your reading of the article, answer the following questions.
a. What is the primary difference between nonstatistical sampling and statistical sampling?
b. What reasons are often given to support the decision to use nonstatistical sampling versus statistical sampling?
c. What is the main advantage of statistical sampling?
d. Describe what is meant by “probability sampling.”
e. What is the “upper confidence limit” as referred to in the article?

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