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i. The number of clients to whom a technique as appropriate. This is because the set up and training costs are high.
ii. Whether large population exists. Statistics is the science of large numbers. Where organizations are small with few transactions, a statistical approach is inappropriate.
iii. Adequate controls must exist where they are no controls it is impossible to use statistical techniques because of increased statistical errors
iv. The population being tested must be homogeneous.
v. Sampling units must be separately identifiable and therefore sequential numbering is essential.
vi. The expectation of the error must be low i.e. the internal control system of organization must be reliable.
vii. The risk factors. The level of risk allowable and the degree of risk attached to an item being tested must be considered.
Wilfykil answered the question on April 11, 2019 at 14:06
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