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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Evidence and testing considerations

Gantry Co's auditor wants to test 60 purchase invoices from a population of 4,000 invoices, with every invoice having an equal chance of selection and the sample drawn using a random number generator. Which sampling method is being used?

The method is random selection. Every invoice has an equal chance of being picked, and a random number generator is used, which is the standard statistical random approach under ISA 530. Systematic, haphazard and monetary unit methods work differently, using intervals, no structure, or value-based probability respectively.

  1. ARandom selection (statistical sampling)Correct
  2. BSystematic selection with a random start
  3. CHaphazard selection
  4. DMonetary unit sampling

Explanation

Random selection gives each sampling unit an equal chance of being chosen and is typically done with random number generators. Systematic selection uses a fixed interval from a start point. Haphazard selection has no structured technique and is non-statistical. Monetary unit sampling selects individual currency units with probability proportional to value, not invoices equally.

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