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CA Intermediate · Auditing and Ethics · Audit Evidence

During the audit of Himalaya Foods Pvt Ltd, the auditor selects 40 items from a population of 2,000 purchase vouchers by picking every 50th voucher after a random start. This approach to selecting items for testing is best described as:

This is systematic selection, a sampling method where items are chosen at a constant interval from a population after a random start. Here the interval is 2,000 divided by 40, giving every 50th voucher, which differs from haphazard, judgmental or block selection methods.

  1. AHaphazard selection
  2. BSystematic selectionCorrect
  3. CSelecting specific items
  4. DBlock selection

Explanation

Systematic selection uses a constant interval (2,000/40 = 50) between selections after a random starting point. Haphazard selection has no structured technique, and specific items are chosen on judgment such as high value or key items. Block selection takes contiguous items.

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