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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

An internal auditor at Kaveri Textiles Ltd wants to test whether purchase invoices were approved before payment. The population has 4,000 invoices, and every invoice has an equal chance of being picked using a random number generator. Which sampling method is being used?

This is simple random sampling, because each of the 4,000 invoices has an equal chance of selection through random numbers. It is not systematic, judgemental or stratified, since no fixed interval, personal choice or grouping of the population is involved.

  1. ASimple random samplingCorrect
  2. BSystematic sampling with a fixed interval
  3. CJudgemental sampling
  4. DStratified sampling by value

Explanation

When every item in the population has an equal chance of selection using random numbers, the method is simple random sampling. Systematic sampling needs a fixed interval after a random start, judgemental sampling depends on the auditor's choice, and stratified sampling first splits the population into groups.

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