Final answer:
Audit sampling is commonly used in conjunction with 2. analytical procedures, where it helps auditors to draw conclusions about a population from a sample. It is not typically used in reperformance, inquiry, or observation methods of evidence collection.
Step-by-step explanation:
Audit sampling is a key tool in the field of auditing that allows auditors to make conclusions about a population based on a subset of that population. Amongst the options provided, analytical procedures are the most commonly associated with the use of audit sampling. Analytical procedures involve evaluating financial information by studying plausible relationships among both financial and non-financial data. Audit sampling allows an auditor to apply these procedures to a subset of data and extrapolate findings to the entire dataset.
Audit sampling is not typically associated with reperformance, inquiry, or observation, as these methods of collecting audit evidence usually involve the auditor engaging directly with the processes or personnel within an organization. Reperformance involves the auditor independently executing procedures or controls that were originally done as part of the entity's internal controls. Inquiry consists of gaining audit evidence through discussions with knowledgeable individuals within or outside the entity. Observation involves the auditor looking at a process or procedure being performed by others.