METHODS OF SELECTION OF THE SAMPLE AND HIS FUNCTION IN THE AUDIT OF THE FINANCIAL REPORT

Abstract

The increasing scope of activities to be carried out by the auditor in the audit process, imposes the need to use the sampling method to obtain sufficient and adequate evidence for issuing an opinion on the truthfulness and accuracy of the information presented in the financial reports. In order to obtain confidential and relevant evidence, the sample serves as the most useful solution on the basis of which the entire population of accounts and groups of transactions is studied.  During the audit process, the auditor performs its activities on the basis of a selected sample of items and transactions. The application of the sample method enables the auditor to evaluate the evidence for any of the items, thus making a conclusion as to the population from which the sample was taken. The sample should have the same characteristics as the population from which it was derived, that is to represent a population of the population, and be of a size sufficient to be representative. The use of the sample method as a tool in the implementation of the audit process is widely used by the auditors, facilitating their work, no matter what type of audit is conducted and what the object of the analysis is. This method saves time, effort, money, and resources of auditors while researching, while at the same time enabling them to build a high-quality, and credible opinion of the information provided in the financial statements.

Keywords: audit, sample, population, auditor, results, risks, testing