Page 113 - CA Final Audit Titanium Full Book. (With Cover Pages)
P. 113
CA Ravi Taori
If present population is Already BIG Already SMALL
If population size increases Negligible effect on sample Sample size increases
size
Effect on Efficiency Efficiency Increases Less efficient
Note:- : (In reference to
Monetary Unit Sampling) But
if there is proportionate
increase in materiality /
tolerable misstatement level
then increase will get
compensated.
(CNO-SA530.100) Step 3 - Selection of Items For Testing
Approaches to sample selection:
• Statistical
o Equal chance of Selection
o Probability Theory
• Non-statistical (Judgement based)
Important points:
• Sample should represent population.
• These approaches are not about sample size but the way the items are selected as sample.
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