Advantages of Audit sampling:
(1) Audit sampling facilitates the auditor to sketch
conclusions about a population without testing all of the
transactions or balances in the population as a whole.
(2) Audit sampling also facilitates the auditor to focus
on high risk or high value items, and to distinguish
between elements of a population which may be subject to differing internal controls.
Disadvantages of Audit sampling:
(1) There is always a risk that the auditor’s sample
is not representative of the population as a whole.. Auditors
determine and accept this risk, and carry out other procedures to recompense for it,
but it always remains a risk.
(2) Sampling relies on the use of judgement in
relation to exceptions, materiality and in drawing conclusions