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Give the reasons for audit sampling

Give the reasons for audit sampling

Answers

Wilfred
i. A complete check for all transactions and balances a business is no longer possible owing to the numerous numbers of transactions.

ii. Time factor. Examining all the transactions will take a lot of time. The cost of doing this will be prohibitive because audit fees are largely based on amount of time spent on assignment. Also a complete check will take so long that the accounts will be ancient history before users saw them.

iii. The objective of an audit is to express an opinion as to whether the financial statements show a true and a fair view. It is possible for the auditor to obtain the assurance without examining all transactions. The use of sampling with properly set out objectives and properly constructed tests allows more valid conclusions to be reached than when many transactions as possible are tested. This is because detailed testing is done on a sample.

iv. A complete check would bore the audit staff so much that their work would become ineffective and errors would remain unidentified.
Wilfykil answered the question on April 11, 2019 at 13:50

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