Describe systematic sample selection and explain how an auditor will select 40 numbers from a population of 2,800 items using this approach. What are the advantages and disadvantages of systematic sample selection?

Distinguish between sampling risk and nonsampling risk. How can each be reduced?
15-2 (OBJECTIVE 15-2) What are the three main phases of audit sampling? Are these phases the same for statistical and nonstatistical sampling methods?
15-3 (OBJECTIVE 15-2) Explain the difference between probabilistic and nonprobabilistic sample selection.
15-4 (OBJECTIVE 15-2) Explain what is meant by block sample selection and describe how an auditor can obtain five blocks of 20 sales invoices from a sales journal.
15-5 (OBJECTIVE 15-3) Explain the difference between replacement sampling and nonreplacement sampling. Which method do auditors usually follow? Why?
15-6 (OBJECTIVE 15-3) What are the two types of simple random sample selection methods?
Which of the two methods is used most often by auditors and why?
15-7 (OBJECTIVE 15-3) Describe systematic sample selection and explain how an auditor will select 40 numbers from a population of 2,800 items using this approach. What are the advantages and disadvantages of systematic sample selection?
15-8 (OBJECTIVE 15-3) Distinguish between probabilistic selection and statistical measurement. State the circumstances under which one can be used without the other.
15-9 (OBJECTIVE 15-4) What is the purpose of using nonstatistical sampling for tests of controls and substantive tests of transactions?

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