Audit Sampling – A Tool To Balance Audit Precision And Cost

Abstract

The ongoing global economic crisis presents new challenges for the auditing profession, as audit clients are increasingly exposed to financial instability and a heightened risk of bankruptcy. In response, auditors must enhance their application of professional scepticism and ensure the collection of sufficient and appropriate audit evidence. A key approach to achieving this is using audit sampling – employing both statistical and nonstatistical methods. When applied in a complementary manner, these techniques can significantly improve audit quality, reduce subjectivity in auditor judgment, and contribute to the formulation of more reliable and objective audit opinions.