Final answer:
The auditor is most likely to use audit sampling when professional standards require certain audit procedures to be performed. Sample usage is driven by efficiency and the need to make reasoned conclusions about entire populations based on a subset of data. The size and selection method of the sample greatly influence the accuracy and representativeness of the results.
Step-by-step explanation:
The auditor is more likely to use audit sampling when professional standards expect the auditor to perform certain audit procedures. This is because other options, such as when evidence is not available in electronic form or the population is small, do not necessarily dictate the use of sampling.
Audit sampling is utilized to provide a reasonable basis for the auditor to draw conclusions about the entire population from which the sample is drawn. It also makes the audit process more efficient and cost-effective.
An example of when audit sampling might be used is in a situation where the auditor needs to examine a large number of transactions. Instead of checking each one, the auditor could select a subset for closer inspection, hoping that this smaller group is representative of the whole.
This process is inspired by other situations where sampling is used, such as in public opinion polls or quality control in manufacturing.
It's important to choose the right sample size and method to achieve accurate results.
For instance, the use of a convenience sample might be easy and affordable, but it has limitations in terms of generalizability. Similarly, in the context of audit sampling, a thoughtfully chosen sample by the auditor could help in efficient auditing without compromising the reliability of the audit findings.