CMA Intermediate · Corporate Accounting and Auditing · Audit Sampling, Audit Techniques and Analytical Procedure
An auditor selects a sample of 40 invoices from a population of 2,000 by choosing a random starting point within the first 50 items and then taking every 50th invoice. Which selection method is this under SA 530?
This is systematic selection. The population is divided by the sample size to obtain a sampling interval of 50, a starting point is fixed within the first interval, and every 50th unit thereafter is chosen. The auditor must ensure the interval does not coincide with a pattern in the population.
- AHaphazard selection
- BBlock selection
- CSystematic selectionCorrect
- DMonetary Unit Sampling
Explanation
The population (2,000) divided by the sample size (40) gives an interval of 50. Selecting a starting point and then every 50th unit is systematic selection. Haphazard selection uses no structured technique, and block selection takes contiguous items.
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