Statistical sampling focuses on the random selection of several items needed for inspection, which is a method that has been endorsed by different accountancy bodies. It is presumed that the growing dissatisfaction with some of the traditional approaches used in sampling as well as the recognition of the different benefits derived from statistical sampling have been the foundation of its adoption in investigations. According to O'Keefe, Simunic, and Stein (1994), statistical sampling, as applicable to the defense of an auditor sued in court, will enhance the objectivity of the case. In this case, the adoption of statistical sampling in the accounting procedure will be beneficial from the point of view that the auditing procedures are designed in a manner that minimizes chances of error. For this reason, statistical sampling will furnish the auditor with measures of prevision as well as reliability, which can be presented in court as factual.
Pedro Araujo (2009) indicates that statistical sampling assists in measuring the degree of uncertainty mathematically. For this reason, the auditor could use part of the data provided in his defense since the mathematical provision will be considered as the principle advantage due to this unique feature. The mathematical element of uncertainty will ensure that the author determines the limits that he would consider acceptable in relation to his case in court. Even in the absence of any form of impropriety by the auditor, it would be essential for the accused to provide evidence related to the manner in which this data was collected. Since statistical sampling could be used for the provision of this type of data, it would be considered as the most appropriate way through which the auditor could secure his or her defense. It is the most suitable way since it removes possible risks of him or her being accused of selecting a biased sample.
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References
Araujo, P. (2009). Key aspects of analytical method validation and linearity evaluation. Journal of chromatography B , 877 (23), 2224-2234.
O'Keefe, T. B., Simunic, D. A., & Stein, M. T. (1994). The production of audit services: Evidence from a major public accounting firm. Journal of Accounting Research , 241-261.
