Non-statistical sampling is upon auditor’s judgment and subjected to biasness (Resource Management Services, Inc, 1994).
In the process of performing auditing procedures, the population needs to be well defined for its true and perfect representation which will help in providing effective decision to the client’s reliability and internal control of daily transactions. The pre-defined sample provides a systematic and simple procedural approach while auditing and tends to increase the work speed (Indiana University–Purdue University Fort Wayne, n.d.).
There are certain risks and errors while determining the sample size. The risk, the tolerable error and the expected error are the significant factors that are liable to affect the sample. In such cases, the sample size will be misleading and the probability of biasness will be high.
The sample which is not properly designed and selected is subjected to risks and errors. This will increase the viability of truth and validity of the data and provide a misrepresentation of the facts. The misrepresentation will provide a false situation of the financial condition and facilitate deceptive course of action to be taken, hampering the performance of the business in due course of time (Hong Kong Institute of Certified Public Accountants, 1997).
The auditor needs to evaluate the result of auditing procedures based upon certain facts. The audit process should provide a premise of analytical review for the test of transactions and balances. The audit program should be detailed out properly with proper compliance to the generally accepted auditing standards (Fayetteville State University, n.d.).
The qualitative factors that need to be considered while encountering an error may be due to misrepresentation of documentation, representation by management in providing guidelines, misinterpretation of facts and mistakes in