CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques
An internal auditor at Bharat Logistics Ltd selects every 25th expense claim from a register of 2,500 claims, beginning with a randomly chosen starting point between 1 and 25. How many claims will be selected, and what is this method called?
The auditor will select 100 claims, since 2,500 divided by an interval of 25 gives 100. Picking every nth item after a random start is systematic sampling, not stratified sampling, because the population is not divided into subgroups beforehand.
- A100 claims; systematic samplingCorrect
- B25 claims; stratified sampling
- C100 claims; stratified sampling
- D25 claims; systematic sampling
Explanation
Sample size = 2,500 / 25 = 100 claims. Selecting at a fixed interval from a random start is systematic sampling. Stratified sampling would divide the population into groups first, which is not done here.
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