Statistical sampling techniques for auditors

Abstract

This paper intends to look into the application of statistical sampling techniques to auditing. As voluminous data extensive testing, the conventional techniques may not be adequate and competence to the statistical method. The user of die data especially the financial statements require more stringent and concrete evidence to evaluate the status of their investment. The objectivity and calculated sampling risk of the statistical method assure a higher degree of confidence in auditor’s opinion and a more defensible results. Somehow on the contrary, the Bayesian approach which suggests the auditor's subjective estimate to the population be involved in the evaluation is discussed.