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Unformatted text preview: sample. 3. More likely sample is representative. 4. Requires audit specify basis for judgments 5. More convincing in court. Disadvantages of statistical sampling 1. Training auditors in proper use + equipment. 2. Time to design and conduct sampling application. 3. Assume no prior knowledge of error distribution 4. Sometimes not justified due to small population The Assumption of Ignorance “Diversification is a protection against ignorance. It makes little sense for those who know what they are doing.” Warren Buffet...
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- Fall '08
- representative, Statistical sampling, Judgmental sampling Statistical