There are 2 general approaches to sampling: statistical sampling and nonstatistical sampling.

Statistical sampling is more objective and uses probability to determine the appropriate sample size. While it is does not eliminate sampling risk, statistical sampling allows the auditor to measure sampling risk and take steps to control it.

Nonstatistical sampling relies more on the auditor's judgment. For example, if a company had 10,000 customers, but 3 of those customers were responsible for 97% of the receivables, the auditor might simply send confirmations to the 3 largest customers. The auditor would not be using the laws of probability to draw the sample, but would be using his or her judgment to draw the sample.—
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