Systematic selection as used in auditing implies choosing the n th item within a population after random points of start (Christensen, Elder & Glover, 2014). For instance, in a population containing m units and a desired sample size of p units, the auditor chooses every n th unit, which is given as m/p. This process of selection is conducted in a systematic manner. It begins at a random point among the very first r units in the population. Notably, a case where the population is not arranged in a particular numerical sequence, it is normally simple to select a systematic random sample instead of a pure random one.
In systematic selection, some caution must be exercise in order to obtain a random sample. It is vital to take caution over the fact that choosing every n th item within the population may not achieve a random sample when the population positions are arranged in a non-random order. This fact informs the need for auditors to always check if the population is arranged in a random order to coming up with a non-random or biased sample during the use of the systematic selection process. Multiple random starting points have to be used in the event the population is not in a random order.
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This systematic selection is applicable to the unnumbered documents or transactions. Firstly, in the event that documents or even transactions are unnumbered, there is no necessity of numbering them physically like it is in the case of the random number table selection. In this case, the auditor normally counts off the interval of selecting to make choices among the documents. This factor makes systematic selection to be a very useful method of sampling for the auditors. It can be put to multi-purpose.
Reference
Christensen, B. E., Elder, R. J., & Glover, S. M. (2014). Behind the numbers: Insights into large audit firm sampling policies. Accounting Horizons , 29 (1), 61-81.
