Final answer:
Audit sampling is not used for external confirmation and observation.
Step-by-step explanation:
Audit sampling is a technique used in auditing to select a subset of items from a larger population for testing. It is used to gather evidence and draw conclusions about the entire population being audited. However, there are certain types of audit evidence for which audit sampling is not appropriate.
One type of audit evidence where audit sampling is not used is external confirmation. External confirmation involves obtaining direct communication from a third party to verify information. This can include confirmation of account balances from financial institutions or confirmation of receivables from customers. External confirmation is not suitable for audit sampling because it requires the auditor to obtain full confirmation from each individual customer or financial institution.
Another type of audit evidence where audit sampling is not typically used is observation. Observation involves directly witnessing a process or activity, such as observing the physical inventory count or observing controls being performed. Since observation involves direct evidence and does not require sampling, audit sampling is not necessary in this case.