Criteria - representative samples

Why Do Auditors Use Sampling?

Auditors normally cannot check every single transaction (too many, too costly). So they select a sample and draw conclusions about the whole population.

Criteria – Representative Samples

A sample must be representative, meaning it reflects the characteristics of the whole population.

To be representative:

• Every item in the population should have a chance to be selected.
• Selection should avoid bias (not only choosing “nice-looking” documents).
• Sample size must be large enough to give reasonable confidence.