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What Are the Key Differences Between Random and Judgmental Sampling in Auditing?

In auditing, sampling methods are very important for getting good evidence. There are two main ways to sample: Random Sampling and Judgmental Sampling.

Random Sampling

  • What it is: Every item has the same chance of being picked.

  • Example: Imagine you are checking 1,000 invoices. You could use a random number generator to pick 100 invoices to check.

  • Benefits: This method helps to avoid bias, and the results can be applied to the whole group of invoices.

Judgmental Sampling

  • What it is: The auditor picks items based on their experience and knowledge.

  • Example: An auditor might choose to check only high-value invoices or those that have unusual details.

  • Benefits: This method allows auditors to focus on areas that might have more risks.

In short, random sampling helps make the process fair and unbiased, while judgmental sampling lets auditors use their skills to look closer at potential issues.

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What Are the Key Differences Between Random and Judgmental Sampling in Auditing?

In auditing, sampling methods are very important for getting good evidence. There are two main ways to sample: Random Sampling and Judgmental Sampling.

Random Sampling

  • What it is: Every item has the same chance of being picked.

  • Example: Imagine you are checking 1,000 invoices. You could use a random number generator to pick 100 invoices to check.

  • Benefits: This method helps to avoid bias, and the results can be applied to the whole group of invoices.

Judgmental Sampling

  • What it is: The auditor picks items based on their experience and knowledge.

  • Example: An auditor might choose to check only high-value invoices or those that have unusual details.

  • Benefits: This method allows auditors to focus on areas that might have more risks.

In short, random sampling helps make the process fair and unbiased, while judgmental sampling lets auditors use their skills to look closer at potential issues.

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